By Bahle Gama
THE High Court dismissed Princess Lungile’s application to interject an alleged sale of shares by businessman Michelo Shakantu on Monday.
She had brought the application against Shakantu wherein she claimed that her late husband Victor Gamedze’s shares were transferred to the business mogul without her knowledge or consent.
The application was moved after she learned that Shakantu was allegedly selling the shares once held by Gemedze at Eswatini Mobile to the Public Service Pensions Fund (PSPF).
RELATED: Shakantu Faced E124 Million Debt After Gamedze’s Passing
In its judgement, the court stated that Princess Lungile’s application did not have locus standi (the right to be heard or appear before any court or body on a given question) to interject or interfere in the sale between CherryBite (PTY) Ltd and PSPF without having set aside the transfer of the shares.
“There may be questions regarding the agreement or perpetuated agreement as the transfer of the shares to the Fourth Respondent (CherryBite), but unless and until the transfer has been set aside, the applicant (Princess Lungile) cannot be heard to want to interject,” the court said.
In his answering affidavit, Shakantu had told the court that Princess Lungile consented to the sale of her late husband’s shares at Eswatini Mobile, as noted by the estate’s executor, Derrick Jele.
Shakantu pointed out that she was not yet clear about the legal action she wanted to pursue. Further, he argued that the Princess had simultaneously claimed consent for the sale and transfer of shares from Cherry Bite (Pty) Ltd to PSPF, while also stating in her affidavit that she would suffer irreparable harm if the sale proceeded.
Shakantu expressed regret that the court was dealing with Princess Lungile’s application, which he said lacked the necessary legal foundation for the orders she sought.
He emphasized that all beneficiaries of Gamedze’s estate, including Princess Lungile, consented to the share transfer.
He added that a letter from the executor Derrick Jele dated August 26, 2024, confirmed that not only did Princess Lungile agree, but all beneficiaries as well.
“The applicant cannot deny the beneficiaries’ consent to the sale and transfer of shares while simultaneously relying on a letter that clearly states she (and the other beneficiaries) consented.
Furthermore, she fails to address the clear allegation of consent,” Shakantu argued in the court documents.
Worth noting is that the businessman made a significant gesture by taking on a debt of over E124 million from Stage I Connections (Pty) Ltd, the third respondent in the matter, and a shareholder in Eswatini Mobile Ltd.
This action preserved the estate of the late Gamedze from depletion in 2019. This information was disclosed by Jele in court documents that on March 8, 2019, he received a claim from Waring Attorneys representing Eswatini Bank, demanding E124.9 million from the estate. If this claim were honoured, it would have entirely exhausted the estate’s available funds.
“We needed to find strategies to avoid paying the Eswatini Bank claim using the estate funds. One of the companies in which the estate had an interest was Stage I Connections (Pty) Ltd, a shareholder in Eswatini Mobile Ltd,” Jele clarified in the court documents.
Jele mentioned that Princess Lungile suggested approaching Shakantu to take over the estate’s debt.
“Initially, Shakantu hesitated due to the enormity of the debt, but he ultimately consented after I urged him to assist the estate in honour of his late friend, Victor Gamedze,” Jele noted.
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Shakantu’s decision safeguarded Gamedze’s estate. After discussions with Gamedze’s lawyer, Mlungisi Khumalo, in her presence, the shares were transferred to Shakantu with the condition that he would assume the entire debt with Eswatini Bank.
“I also consulted with the beneficiaries through their attorney, Sabelo Masuku, and they all agreed to the share transfer,” Jele confirmed.
Jele explained that Shakantu opted to have the shares transferred to CherryBite and not to himself personally, with the agreement formalized on May 28, 2019, which Gamedze’s lawyer was aware of.
“Following the agreement, you (Shakantu) took on the estate debt at Eswatini Bank, and I disclosed the share transfer of Stage A Connection in the Liquidation and Distribution Account, with no objections,” Jele submitted in an answering affidavit.
According to the court, the application by Princess Lungile ought to have cited and served the Master of the High Court as per the rules of the court.
“The application is dismissed with costs only in favour of the Fourth Respondent (CherryBite),” ordered the court.
