ANC leader set to lose his R1.6m home
ONE OF the ANC leaders touted as Deputy President David Mabuza’s replacement as Mpumalanga provincial chairperson is set to lose his R1.6 million house for failing to pay Absa over R1.3m.
Former ANC Mpumalanga deputy chairperson Charles Makola, who was once Mabuza’s second-in-charge in the governing party’s provincial structures, will lose the house in Witbank Extension 10 after the banking giant successfully obtained an Mpumalanga High Court order authorising the execution of the property.
The bank made available a facility of R1.3m to Makola and he agreed to pay a minimum of about R10500 in monthly instalments.
However, court papers showed that Makola failed to repay the instalments and by November 2017 he owed more than R1.32m.
Absa demanded that Makola pay the R1.32m with interest at the rate of 9.25% November 2018 to the date of payment.
The former Nkangala district municipal manager put up his residence as security for the private banking account he utilised for six years.
Acting Judge Hein Brauckmann found that although the purpose for which Makola used the account was unknown, such facilities were normally used by individuals who were in business for business purposes.
In his judgment last month, Judge Brauckmann was unconvinced by Makola’s explanation for his inability to service the facility after using it for six years and owing Absa more than when the agreement was entered into.
Makola had told the court that Absa closed the account and as a result, he was prejudiced as the bank breached its own agreement with him.
The value of Makola’s property is R1.6m and its forced sale value was just over R1.06m, which is less than the outstanding debt, while he also owed about R9000 in rates and taxes.
Judge Brauckmann ordered that an amount of R1.43m be set as a reserve price for the property.
The judge rejected Makola’s claims of his right to adequate housing and the fact that the family would be left destitute and living on the streets without adequate housing.
“For present purposes, it is appropriate to record that I am unable to secure alternative accommodation for myself, my wife and children should the immovable property be declared specially executable and subsequently sold by the plaintiff (Absa), notwithstanding the immense upset and trauma that it could cause to my wife and children,” Makola argued.
Judge Brauckmann said that Makola did not provide any reasons why the property should not be declared specifically executable.
He also said he did not provide the court with his income, his sources of income or his spouse’s, his debts or any other reason why he would not be able to afford alternative accommodation for his family and himself.
Makola yesterday did not respond to calls, text and a WhatsApp message despite having read the latter.