Kaizer Chiefs Executive Bobby Motaung Hit by a Fresh Financial Scandal

• Kaizer Chiefs manager Bobby Motaung is reportedly facing new financial controversies that have once again put him in the legal spotlight
• Lawyers claim that certain allegations against his company may no longer be valid, raising questions about recent court decisions.
• Allegations of large unpaid obligations and undisclosed debts have also emerged, leaving the full impact of the situation unclear

Fresh financial scandals have reportedly emerged involving Kaizer Chiefs football manager Bobby Motaung.

The Amakhosi executive is the son of the club’s founder and chairman, Kaizer Motaung. He has frequently made headlines due to financial issues. According to the Sunday World, new controversies have now surfaced.

The latest developments came to light during proceedings at the Johannesburg High Court this week.

Reports suggest Motaung, who recently launched his foundation, defaulted on a R600,000 loan he took from the Nthwese Investment Consortium, the company he co-owned with business partner Herbert Theledi.

Read also

Kaizer Chiefs board member demands high expectation from coach Nabi

This failure reportedly led to the liquidation of his company, Lakeshore Trading, which owns a property complex in Mondeor, Johannesburg South. The details were revealed by the lawyers representing the company that purchased Lakeshore.

Legal battles and liquidation orders

Documents reviewed by Sunday World show that GRC requested the court to rescind the liquidation order, highlighting that it had settled with the liquidators of Nthwese and Pent Up, who later withdrew their opposition.

Lawyers explained that on May 15, 2023, Lakeshore Trading was placed under provisional liquidation, later moving to final liquidation by Pent Up for failing to pay R2.5 million.

The company was also placed into final liquidation on June 22, 2023, following a petition by the liquidators of Nthwese Investments Holdings Consortium.

They added that Nthwese itself had been wound up in May 2018. The lawyers said the liquidators sought Lakeshore’s liquidation based on Nthwese’s audited 2015 financial statements, claiming the company was indebted by R600,000 and unable to meet its obligations.

Read also

Phiri opens up about rejecting ‘excessive’ Kaizer Chiefs offer while at Brondby

However, the lawyers argued that the application had either not been properly served or had become stale, noting it was reportedly served at Lakeshore’s registered office on February 12, 2021, over two years before the order was granted, with no explanation for the delay.

Motaung’s defence and company solvency

GRC’s lawyers maintained that by the time Nthwese filed for Lakeshore’s liquidation, the alleged debt had already prescribed. They also insisted that Lakeshore remains financially solvent.

In his founding affidavit, GRC director Nazir Ahmed Talia stated that during an insolvency inquiry into Nthwese, Motaung testified that the disputed amount was a personal loan, not a payment instead of salary or directors’ fees. Talia added that Motaung had taken personal responsibility for the debt, and Lakeshore had neither acknowledged nor accepted it.

The loan repayments were due between September and December 2010, meaning the debt had long been prescribed before liquidators questioned Motaung or applied for Lakeshore’s liquidation. Talia emphasised that Motaung had no authority to acknowledge any debt on behalf of Lakeshore during the proceedings, saying:

Read also

Steve Hofmeyr's IKOON concert in Cape Town has been cancelled

“Lakeshore was already in liquidation, and Motaung had no power to bind the company.”

He added that he was unaware of the liquidation application when he became a Lakeshore director, and had he known, he would have opposed it.

GRC’s lawyers further reiterated that Lakeshore is solvent, with assets valued at R10.958 million, and aside from a disputed municipal claim, has no significant creditors. Despite this, the court granted the liquidation order.

Motaung and Theledi reportedly owe SARS over R90 million in unpaid company taxes. GRC is also pursuing Motaung for R3.4 million, claiming he sold the complex without disclosing the company’s outstanding debts to tax authorities and creditors.

At the time of publication, Motaung had not responded to requests for comment from Briefly News.

Kaizer Chiefs executive pays R2.2 million divorce settlement

Briefly News previously reported that a Kaizer Chiefs executive, believed to be one of the club's founders and chairman, Dr Kaizer Motaung's children, has reportedly paid a staggering R2.2 million from his pension fund to his estranged wife as part of a divorce settlement.

Read also

Gauteng MEC warns that unroadworthy vehicles will be impounded, Mzansi wants taxis targeted first

It was reported that the high-ranking executive filed for divorce last year in the Johannesburg High Court, citing irreconcilable differences.

Source: Briefly News