Sterenborgs ordered by UK court to pay R53m to Gumede
BUSINESSMAN Robert Gumede has been awarded R53m in damages and costs by a UK court against his former business partner, John Sterenborg.
Judging by their comments on the decision, it is not likely to end their bitter and lengthy legal battle. The UK ruling reinforces an order by the South Gauteng High Court in favour of Mr Gumede in 2006.
“I am happy that it has come to an end,” Mr Gumede said. “I was labelled as a corrupt and dubious person and that damaged my credibility. I lost business opportunities because of unfounded accusations as certain people believed what he (Mr Sterenborg) said.
“This should be a lesson that you cannot accuse people when you are in the wrong yourself. I will recover everything — even if I attach his wheelbarrow,” Mr Gumede said.
In 2000, Mr Gumede’s company, Guma, bought 100% of Applied Cards Technologies from Mr Sterenborg and his wife Elizabeth for R30m.
According to Mr Gumede, after he had paid for the final tranche of shares in 2001, he learnt that Applied Cards Technologies was insolvent and facing a liquidation application. He said that Mr Sterenborg had withheld that information from him.
Applied Cards Technologies, which was producing prepaid card vouchers for Telkom, was later liquidated.
Guma was subsequently awarded a multimillion-rand contract to manufacture the cards for Telkom.
Court battles between Mr Gumede and John and Elizabeth Sterenborg
have been raging since 2001.
“The Sterenborgs instituted vexatious claims against me in four actions in the South Gauteng High Court for a total sum of R301m,” Mr Gumede said.
He had successfully defended all the legal action that was not withdrawn by the Sterenborgs, he said.
In 2003, Mr Gumede instituted court action for R52,3m against the Sterenborgs in respect of profit warranties of R201,3m to which Applied Cards Technologies had committed in the sale of shares agreement.
Because the company had not made any profit, Mr Gumede said he was owed R52,3m as he held 26% of the shareholding in Applied Cards Technologies.
In 2006, the high court affirmed his claim, which, together with interest and costs, is now R53m.
Mr Gumede said the Sterenborgs relocated but he traced them to Britain in 2010 to recover the money owed to him.
Mr Sterenborg said yesterday the UK court “did not and could not judge the fraudulent case on which Mr Gumede’s equally fraudulent South African judgment is based”.
“The court, as a matter of law, could only but recognise the South African judgment as only the South African courts have jurisdiction.
“It is a technical (paper) matter therefore, not one based on one iota of evidence or facts.”
Mr Sterenborg said he was looking “into the various options open to us to place all our unequivocal evidence of Gumede’s corruption, those he has done everything to keep secret, into the public domain”.