Society couple escape court bid for their cash
A BID to sue high-flying couple Jerry Vilakazi and his wife, Doreen, for R9.5-million, has been abandoned at the eleventh hour by the National Empowerment Fund (NEF).
Instead, the parties reached an “amicable” agreement in respect of the millions owed by the couple’s company, the fund said yesterday.
The Vilakazis’ company, Kazzi Corporate Wear, got a loan of R8.5-million in 2013 to help keep it afloat after it landed contracts to produce uniforms for SA Express and Netcare.
According to court papers, the Vilakazis stood surety for the loan, which was to be repaid in nine instalments. The couple owe another R1-million in interest.
Doreen is a director of Kazzi Corporate Wear and Jerry a 50% shareholder. Jerry is also a commissioner at the National Planning Commission within the Presidency. Doreen did not respond to questions from the Sunday Times.
The fund went to court to obtain an order against the couple, the company and one of their bank accounts.
In papers, the fund said it would suffer serious financial loss should the loan not be repaid, and that “its mandate to fund other need-deserving businesses or persons [would] be hampered”.
NEF spokesman Moemise Motsepe would not divulge details of the agreement.
“The parties have concluded an agreement on the issue, and the [draft] court order is therefore irrelevant,” Motsepe said.
He also stressed that the lawsuit had been abandoned and that the fund did not seek to “ferment disharmony” between itself and the Vilakazis.
“The NEF has not funded any other transactions involving Mr or Mrs Vilakazi.”
However, the fund was encouraged that Kazzi’s business operation was stabilising.
This is not the first time a Vilakazi textile company has had problems: the couple were involved in the takeover of one of South Africa’s oldest clothing companies, Trubok, in Newcastle, KwaZulu-Natal, several years ago.
They obtained funding from the Industrial Development Corporation (IDC) to help rescue the company. But Trubok suffered major losses after the takeover.
Work dried up and many long-time employees were retrenched. In addition, some former employees did not receive severance pay — and there were concerns over provident fund deductions that were never sent to Old Mutual.
This week, the IDC said Trubok was honouring its payment obligations.