CAF President Patrice Motsepe Faces R3 Billion Court Battle After Tanzanian Company Appeals Ruling

• A Tanzanian mining company appealed a High Court ruling involving a R3 billion damages claim against Patrice Motsepe
• Pula Group alleges that Motsepe-linked companies breached a confidentiality and non-compete agreement tied to a graphite project in Tanzania
• The appeal means the dispute remains unresolved, and Pula Group could seek even more than the original $195 million claim

CAF president and Mamelodi Sundowns owner Patrice Motsepe is at the centre of a fresh legal dispute after a Tanzanian mining company filed an appeal against a High Court ruling connected to a R3 billion damages claim.

Pula Group, together with its Tanzanian subsidiary, is pursuing $195 million in damages from Motsepe and several companies linked to him, including African Rainbow Minerals, African Rainbow Capital Investments, and ARCH Sustainable Resources.

The claim stems from allegations that those entities violated a two-year confidentiality and non-compete agreement by investing in Australian mining company Evolution Energy Minerals, whose Chilalo graphite project sits adjacent to Pula's own graphite operation in Tanzania.

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Why the Tanzanian High Court Did Not Rule on the Merits

Justice F.M. Mirindo struck the case off the roll in a judgment dated 7 August, finding that Pula had failed to include Evolution as a necessary party to the proceedings. The court did not make any finding on whether the non-compete agreement had been breached or whether Pula was entitled to any compensation.

Pula has since filed a notice of appeal, stating that it was dissatisfied with the ruling and was contesting the judgment in its entirety. The court's judgment did, however, confirm that Tanzania holds jurisdiction over the dispute and found that Motsepe had sufficient influence over African Rainbow Capital through his controlling stake to be materially involved in the investment decisions at issue.

Pula Could Seek More Than the Original Claim

Pula Group chairman Charles Stith, a former United States ambassador to Tanzania, confirmed that the appeal was lodged on 24 August. Stith explained that Evolution was not originally named in the lawsuit because the company did not sign the non-compete agreement.

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"While Evolution is a party to the transaction, the investment was made into the company, and Evolution did not sign a non-compete agreement," Stith said, adding that only the investor could be held accountable for whether the agreement was honoured.

Stith also indicated that Pula could refile the case alongside the appeal, and that a fresh claim might exceed the initial $195 million. He pointed to an Evolution investor document that valued the company at $340 million as a factor that could influence the quantum of any future damages sought. The original figure was based on a valuation by Bowline Professional Services of the competitive losses Pula allegedly sustained.

African Rainbow Capital Investments said it was aware of the appeal but noted that the notice contained no grounds for the challenge, making it premature to comment. African Rainbow Minerals said it respected both the court's decision and Pula's right to appeal, and would allow the legal process to proceed.

The dispute is entirely separate from Motsepe's football responsibilities. He has served as CAF president since 2021 and remains one of the most prominent figures in African football through his ownership of Mamelodi Sundowns.

Source: Briefly News