Summon PM on Tonkwane Estate sale – Bennett, others
MBABANE – The High Court has been called upon to order that Prime Minister (PM) Cleopas Dlamini be summoned to court to answer on the impugned transaction for the sale of Tonkwane Estate to PSPF.
The farm was purchased by the Public Service Pensions Fund (PSPF) when Dlamini was the chief executive officer (CEO) of the fund.
The application has been moved by businessman Walter Bennett and grandchildren of Sloveig Crabtree. The children alleged that the sale was tainted by illegalities and they want Dlamini to answer on allegations around the purchase of the property by PSPF. They also wanted the court to order the issuance of subpoenas of the now late Langalakhe Dlamini, who was the CEO of PSPF, Chairman of the Land Management Board, Sandile Ceko and one Vusi Dlamini.
Grandchildren
Tonkwane Estate formed part of Sloveig’s estate and her grandchildren, Kristopher Crabtree, Emily Crabtree and Katie Crabtree, who reside in the United Kingdom, are beneficiaries of the estate.
Sloveig’s daughter, Rosemary McEwen, who resides in the USA, is also a beneficiary. The grandchildren and their father, Robert Crabtree and McEwen want the executor, Alan McGreggor, removed from his position.
He was appointed by Sloveig in her Last Will and Testament. Sloveig died on May 6, 2012, in Cape Town, South Africa. The grandchildren and McEwen were allowed to join the proceedings and to file their affidavits when they applied to intervene in the proceedings to remove McGregor from the position of executor.
Bennett, in terms of the will, is entitled to one per cent of Sloveig’s estate.
Sloveig’s estate included Tonkwane Estate, which was sold to Dups Holdings (Pty) Ltd for E28 million by the executor, McGregor. It was subsequently purchased by the PSPF for E74 million from Dups Holdings at a price that the former CEO of PSPF allegedly said was good.
Shares
Bennett approached the High Court in 2016 for an order, among others, interdicting the transfer of all shares of T1 and T2 Property (Pty) Limited sold to Dups Holdings unless his one per cent share of land forming part of the estate was catered for in Form C.
McGregor stated that the transfer of the property and the shares to Dups Holdings had already happened and he told the court that the agreement had been implemented.
Other applications filed in this matter include one by Robert and his children, who accused McGregor of misconduct and applied to the court that he be removed as the executor.
In an affidavit filed by one of the grandchildren, Kristopher said the PM should be subpoenaed to the High Court in respect of allegations to the effect that PSPF allegedly resolved to purchase the estate properties, T1 and T2 Property, knowing well at the time that these companies were not the rightful owners of the properties.
PSPF, according to Kristopher, at all material times knew, or ought to have reasonably known, that Dups allegedly did not have authority from the executor to deal with the properties of Sloveig’s estate. PSPF, according to Kristopher, allegedly falsely claimed that it invited T1Property and T2 Property to a presentation that was held in
or about the beginning of June 2016, at which the potential purchase of the estate properties was discussed.
“It is submitted that certain undisclosed and undue payments were made by Dups to one or more officials of the fund (PSPF) in order to ensure the fund’s cooperation in buying the estate properties. It is contrary to all notions of justice that a transaction tainted by illegalities of this nature should be permitted to stand.
“The executor failed to obtain the consent of all the beneficiaries to the sale of the estate properties and shares to Dups. Some of the beneficiaries were minors at the time that the said impugned transactions were carried out. This required additional steps to be taken by the executor to protect the interests of the children. The executor failed to obtain the approval of the Master of the High Court,” said Kristopher. The veracity of these allegations is still to be tested in court. The respondents are yet to respond to the allegations. The BoxshallSmith Attorneys represent the grandchildren and McEwen.
Kristopher submitted that by reason of the alleged illegality and defects in the sale of the property and shares, T1 and T2 Property did not have the authority to enter into agreements of sale of the estate properties with PSPF and to transfer the properties to the fund.
Defects
He alleged that further defects and irregular and unlawful conduct occurred when the impugned transactions were carried out. He further submitted that the consent of the Land Control Board Act was required in terms of Section 8 and the absent consent, the sale and agreement in terms of which the transfer took place was void.
“The executor did not seek the consent of all the heirs to the sale of Portion 2 and 4 (to T1 Property). The executor’s wife obtained an improper benefit from this sale. She unduly profited from proceeds of the sale of her share in T1 Property to Dups,” added Kristopher.
He alleged that the same of the estate properties was in contravention of Section 66 of the Administration of Estates Act, 1902. He said the consent of the Master of the High Court was required for a sale of property out of hand.
Kristopher also informed the court that the most basic enquiries on the part of PSPF would also have raised serious questions and concerns with regard to the legality and legitimacy of the transaction. He said this would have opened the way for the executor to negotiate with PSPF for the purchase and sale of the estate properties. The respondents to the matter, in their answer when opposing the application for the intervention of the applicants in the matter, stated that it invited Dups and T1 and T2 Property to a presentation held with its technical teams. Kristopher submitted that the date of the presentation was not stated by Dups and PSPF.
“Accordingly, the invitation referred to by the fund in its affidavit must have been extended to the executor and Sonia, who at that stage were the directors of T1 and T2 Property. The respondents are invited to disclose whether the executor and Sonia were in fact invited to the presentation and if not, why such invitation was not extended?
“The special meeting of PSPF’s Investment Committee that considered the acquisition of the estate properties was held on June 8, 2016. This was well before Portion 2 and 4 were transferred to T1 and before Dups purportedly acquired the shares in T1 and T2 (respectively on August 25, 2016),” Kristopher submitted.
The matter is pending in court.