Sale of Siteki Mall stopped by Supreme Court order
SITEKI – The sale of the Siteki Mall could not proceed yesterday after an interim order stopping its sale was issued by the Supreme Court on Thursday.
The close to 20 bidders were informed that an ex- parte ( an application moved without the knowledge of the other party) was moved before Judge Sabelo Matsebula, who issued the order. Siteki Deputy Sherriff Thulani Ndzabandzaba made the announcement.
The Siteki Shopping Mall consists of 18 shops and was going under the hammer, at a reserve price of E83 202 000.
Malinga and Malinga Attorneys moved the application on behalf of one of the directors, Mcebo Mbhuti Dlamini.
The respondents are Eswatini Development and Savings Bank, Timothy John McSeveney, Nicholus Charles McSeveney and Collin George Ries.
The appellant are Lubombo Property Group ( Pty) Ltd, Norman Sigwane and Mbhuti Dlamini.
ISSUED
The stop of the sale follows a Supreme Court judgment issued last month ordering Lubombo Property Group Limited to pay Eswatini Development and Savings Bank ( EswatiniBank) E53 212 735.80. This was after EswatiniBank won against Lubombo Property Group Limited in the marathon case.
Among the bidders present was former Lugongolweni Member of Parliament ( MP) Joseph Souza. The property, according to a notice, was to be sold through public auction outside the Siteki Magistrates Court yesterday at 3pm.
According to the notice of sale, improvements in the property include the shopping mall occupied by renowned retail outlets and banks. This makes it a good investment with good returns.
The full conditions of sale were available for inspection at the office of the Sherriff at the High Court in Mbabane and at the offices of the Regional Administrator in the Lubombo Region. Lubombo Property Group Limited had initially approached the Supreme Court after the High Court issued a summary judgment directing it to pay a total of E53 212 735.80 it reportedly borrowed from the bank at different instances during the construction of the Siteki Mall. The legal battle involving the bank and the company had been reported extensively since the past year.
It is alleged that as security for the due performance of their ( defendants) obligations in terms of the loans agreements, the defendants offered first mortgage over Portion 149 and 140 of Flame Free Park, Siteki and assured that upon completion of the mall, the property would have a market value of E86 794 000.
PURPOSES
In its first claim, the bank alleged that on May 9, 2018, it lent the company a sum of E2 million and the facility was for the purpose of bridging finance for the payment of Value Added Tax ( VAT) while developing a commercial property in Siteki Town.
In breach of their obligations in terms of the loan payment agreement, Lubombo Property Group Limited purportedly failed to maintain regular and punctual payments, resulting in the account being constantly in arrears. The bank averred that the arrears were brought to the attention of the company by a letter dated January 23, 2020 and at that stage the arrears were E1 684 298.
In the second claim, the bank stated that on May 09, 2018, the parties entered into a written loan agreement in that the bank lent and advanced E25 million to the company and the facility was for the purpose of commercial housing loan for the development of a mall in Siteki Town.
Lubombo Property Group Limited had appealed the High Court judgment. The matter was
then referred to the Supreme Court. The judges of the Supreme Court who dismissed the appeal are Jacobus Annandale, Chief Justice Bheki Maphalala and Stanley Maphalala.
In its judgment, the Supreme Court judges noted that there were many accusations from the quarters wherein the company directors blamed each other for their misfortunes.