‘Tiyas’ company demands E770 000 from E19m property sale

MBABANE – Lionheart Properties (Pty) Ltd is demanding E770 000 commission from Amandla Financial Services for the sale of Sililo Centre in Nhlangano.

Co-director of Lionheart Properties Tiyamike ‘Tiyas’ Maziya of Matsapha, said the application is seeking the remittance of the amount of E770 000 in respect of the company’s commission that is withheld by Amandla Financial Services, being the escrow agent in the sale of the immovable property in Nhlangano.

The purchase price, according to ‘Tiyas’, was E19 million. He said the commission due to Lionheart Properties was E1 million.

He narrated in the court papers that Lionheart Properties had applied for an advance of E200 000, which was provided in February 2022. ‘Tiyas’ said he was advised by Amandla Financial Services that payment had been made to the seller and that the loan taken by his company from the financial services provider had been settled from the commission.

‘Tiyas’ submitted that Amandla Financial Services advised Lionheart Properties that the remission of the balance of the commission would be withheld. He said the reason given was that there seemed to be a dispute between the company members as to who the rightful directors were.

“I verily believe that there is no such dispute and should there be any such dispute, same is not a material dispute of fact in this particular matter. The applicant is a company, therefore, any issue pertaining to the internal affairs of a company are to be exclusively dealt with internally.

“This cannot be a bar to payment of the commission due, more so because the buyer has clearly mandated the respondent (Amandla Financial Services) to remit to the applicant the commission due to it,” said ‘Tiyas’.

The co-director also informed the court that the financial service provider failed to appreciate that Lionheart Properties was a company with distinct legal persona from its directors and that they could not discern into the affairs of the company, as theirs was to discharge their mandate given by the seller.

Meeting

‘Tiyas’ submitted that on April 12, 2022, he was invited to a meeting by Amandla Financial Services where he was advised by Mandla Nxumalo that the commission would be withheld until the internal dispute had been resolved.

He told the court that his brother, Mfokolozi Maziya and wife, Mpho, took him and Beketele to court seeking orders declaring them as directors of Lionheart Properties. He said the application was based on letters of resignation alleging that they had signed on February 2, 2022. Mfokolozi and Mpho told the court that their signatures had been obtained fraudulently. Judge Zonke Magagula dismissed the application. ‘Tiyas’ said there was no legal reason for withholding payment of the commission.

He submitted that on May 4, 2022, Amandla Financial Services allegedly sent an email to Lionheart Properties

advising them that payment would only be made should they furnish them with a resolution by the directors of Lionheart Properties, a confirmation of the directors by the registrar of companies or a settlement agreement between the parties.

According to ‘Tiyas’, his attorneys, SM Jele Attorneys, forwarded a copy of Form J to Amandla Financial Services at his request and the covering letter referred to the urgency of the remission of the commission as Lionheart Properties had expenses and business operations to carry out.

He said Amandla Financial Services sent a correspondence on May 5, 2022 and attached to it was a letter from the attorneys of Mfokolozi and Mpho, who alleged that their letters of resignation as shareholders of Lionheart Properties had been forged.

‘Tiyas’ said he was present in court when the attorney representing Mfokolozi and Mpho allegedly admitted that the signatures on the resignation letters belonged to them. “We are not aware of any misrepresentation leading to the issuing of the said Form J and should any party dispute the authenticity of same, that party should take legal steps to vindicate their rights,” submitted ‘Tiyas’.

Meanwhile, Mfokolozi and Mpho want to join the proceedings between Lionheart Properties and Amandla Financial Services. They have filed an application to be granted leave to intervene in the matter between Lionheart Properties and Amandla Financial Services. The matters are pending in court.