More Zimbabwean Assets Seized in SA
ATTACHED: This house in 48 Klip Street, Observatory, Johannesburg, is one of six properties belonging to the Zimbabwean government that are to be sold to settle a R59-million debt to a German bank
TO SUFFER THE SAME FATE: House No 46 Tennant Road, Wynberg, Western Cape, will also be auctioned Picture: MOEKETSI MOTICOE
EYE-CATCHER: Another of six Zimbabwean properties that have been attached in South Africa and are to be auctioned in July Picture: SIMPHIWE NKWALI
TO GO UNDER THE HAMMER: House No 28 Salisbury Road, Kenilworth, Western Cape, has been attached and is to be auctioned on July 23 Picture: MOEKETSI MOTICOE
The German development bank KFW Bankengruppe has obtained a writ of execution against six government properties in South Africa after failing to get payment on the balance of a à59-million loan, plus interest and additional charges.
This comes just six weeks after South African civil rights group AfriForum secured a writ of execution to attach four government-owned properties in Cape Town.
Wertheim Becker Inc, the South African law firm representing the German bank, confirmed on Friday that the properties would be sold at an auction on July 23 this year.
The properties are:
* 48 Klip Street, Observatory in Johannesburg;
* 179 Beryl Street, Bruma in Johannesburg;
* 798 Merton Avenue, Eastwood, Arcadia in Pretoria,
* 53 Kuyper Street, Zonnebloem in the Western Cape;
* 28 Salisbury Road, Kenilworth in the Western Cape; and
* 46 Tennant Road, Wynberg in the Western Cape.
Attorney Amish Kika said the Zimbabwean consul-general in South Africa had written a letter suggesting that one or two of the properties might have diplomatic immunity – creditors can only move on non-diplomatic assets.
He added: “These are private properties as far as we know, but we will still investigate the claim. The sheriff has already attached them.”
According to court papers filed at the High Court in Johannesburg, the Zimbabwean government, through the Zimbabwe Iron and Steel Co Ltd (Zisco), entered into a loan agreement with the German bank on January 29 1998.
Repayment was to be made in 16 instalments starting in May 2000, but Zisco defaulted after the fourth payment in December 2002.
The German bank appointed a debt recovery agency in December 2004 and, although Zisco confirmed the amount owed in a fax dated June 2005, payment still failed to arrive.
Subsequently, the bank appointed arbitrator Dr Wolfgang Peter to facilitate payment and to avoid legal action. Once this failed, the bank went to court.
However, KFW Bankengruppe has had to negotiate with AfriForum, which previously obtained a writ of execution against three of the properties.
The organisation has successfully acted on behalf of several Zimbabwean farmers dispossessed following President Robert Mugabe’s controversial land grab policy.
Posted by Raymond Mhaka
on May 16, 2010. Filed under Main Headline.
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