CASHING OUT
He calls himself Peter Cashhh and he’s made a fabulous fortune from government contracts. But now SARS and 35 creditors are knocking at his door . . .
SOCIALITE tenderpreneur Peter Sebiloane’s high-flying lifestyle is set to come crashing to the ground with a host of creditors hounding him for unpaid debts and forcing his company into business rescue.
After scoring some juicy government contracts worth R650-million, Sebiloane splurged on a private jet, luxury homes and expensive cars, one of these a red Ferrari 458 Spider worth an estimated R3.8-million.
“Now 36 creditors — including the South African Revenue Service which his company owes R36.4 million — banks, car-finance companies, computer software and hardware suppliers and private individuals, are knocking at his door. They lodged claims worth a total R162.7-million, which was reduced to an agreed claim of R86.1-million.
Sebiloane — who calls himself PeterCashhh on one of his three Instagram accounts — has made a fortune from government tenders.
In 2012 the Free State government awarded his company EduSciMat a R352-million contract to upgrade classrooms to maths labs.
In October last year the company was awarded a similar contract by the North West government, this time for R300-million.
Since then he has lived the high life and posts pictures of his flashy “toys” on social media. These include a white Bentley, a Mercedes G-Class, a red Porsche Cayenne and a black Bentley.
His properties include a lodge on the banks of the Vaal River near Vanderbijlpark called Lala Manzi, which he bought for R6.5-million.
A former business associate, who has direct knowledge of his finances, said Sebiloane spent R15-million rebuilding Lala Manzi with a view to turning it into a boutique hotel. He said Sebiloane spent another R7-million building a house at Eagle Canyon golf estate west of Johannesburg.
In September last year, Sebiloane allegedly crashed his new Ferrari into a tree on the golf estate. WesBank has a claim of almost R2-million for the Ferrari against his company EduSciMat and a panel-beater has offered to pay R900 000 for the wreck.
Sebiloane, 44, told the Sunday Times that he was “an established businessman” who made his first million when he was 21.
“[Of] my sources of funds, EduSciMat is a very little one,” he said, but declined to provide details.
“I’m not going to tell you. It’s my money. I’m not listed. It’s a private matter. No one can tell me to buy what, or drive what. I’m not Brian Molefe. I’m not an Eskom. It’s a private thing.”
He said he no longer owned a Bentley or Ferrari. Asked about crashing EduSciMat’s Ferrari last year, he said: “To be honest, I don’t remember. It was a long time ago.”
EduSciMat’s business rescue plan flags loans of R17.3-million “to shareholders and/or related parties”. Sebiloane is the chairman and 100% shareholder of EduSciMat.
Business rescue practitioner Sipho Sono determined Sebiloane should be held personally liable for R5-million of the amount loaned, which he has agreed to repay over six months. Sono described this as a “subjective” assessment of Sebiloane’s liability.
“I’m not saying he embezzled funds. But if you know your company is strained cash wise, you shouldn’t use operational funds to invest in new projects.”
One of these projects was buying a company called LLM Camp that owned Lala Manzi River Lodge. Sebiloane is the sole director of LLM Camp. “He used it as a place where he relaxed in the summer months with his friends,” said the former associate.
Sono found that the cost of the purchase price and improvements, which are not yet complete, exceeded its R9-million market value by R5.2million.
In his business rescue plan, Sono points out Sebiloane bought a private jet in January to expand his business throughout Africa and start an air charter company. But funding it from operational cash flows was “definitely not a good idea”.
Other irregularities flagged included an absence of “documented systems and processes, resulting in lack of financial discipline”.
A limited review found that “a significant number of transactions” were either not recorded at all or “incorrectly accounted for”.
EduSciMat confirmed this week that a business rescue plan had been approved as a “road map for the emergence of the company”, and referred questions about creditor claims to Sono.
It’s my money. I’m not listed. It’s a private matter