Military veterans in legal battle
THOUSANDS of military veterans are fighting the Municipal Councillors Pension Fund’s (MCPF) bid to liquidate a North West property developer to protect their stake in two vast tracts of land valued at R850 million.
MCPF curators have applied to the Western Cape High Court to have Isago@n12 Development liquidated for failing to repay about R137m.
The MCPF paid R120m for the stands and R16.8m in VAT.
The liquidation would most likely result in the sale of two vast tracts of land of over 1000ha with a market value of R850m.
The matter will be heard in the Western Cape High Court on May 9.
The SA National Military Veterans Association trust wants to stop the liquidation of Isago@n12 Development as they have been identified by the Government Employees Pension Fund (GEPF) and the Public Investment Corporation as beneficiaries of the sale of the land in Matlosana, North West.
The military veterans involved are from Umkhonto we Sizwe, Azanian People’s Liberation Army (Apla), Azanian National Liberation Army, the Transkei, Bophuthatswana, Venda and Ciskei bantustans and the apartheid-era SA Defence Force. They are fighting the liquidation of Isago.
Isago planned to build a “true mixed-use human settlement… where people can live, stay, play and pray”.
According to the MCPF curators, Juanito Damons and Thabang Kekana, Isago was expected to make an initial payment of R30m by the end of November last year in terms of the settlement agreement, but it did not do so.
The remaining R107m was to be paid by the end of this month.
“In view of the above, the fund prepared to proceed with a liquidation application against Isago which was scheduled for December 8, 2018,” said the curators’ report to the Financial Services Conduct Authority’s registrar of pension funds dated January 31, which Independent Media has seen.
But the military veterans’ trust applied to intervene, prompting the postponement of the matter.
The curators said the matter was placed on the semi-urgent court roll and would be heard on May 9.
Isago served summons on Damons and Kekana to invoke the extension of payment dates.
The Trust wants to join as the second respondent to the MCPF’S liquidation application.
“The Trust does so as it has a direct and substantial interest in the subject matter of the liquidation application which is more than merely a financial interest.
“The Trust’s interest and the interests of those whom it represents will be adversely affected by an order for the liquidation of Isago,” said trustee Dudu Phama’s affidavit.
The GEPF has a 60% stake in the land while Isago holds the remaining 40%.
Phama’s affidavit states that the aim of the development of the land by Isago Property Holdings was to create jobs for military veterans, their dependants and other historically disadvantaged individuals and provide education and skills development programmes.
Phama said military veterans would suffer much prejudice should Isago be liquidated and the development cancelled.
“The liquidation of Isago will adversely affect the 170000 military veterans which the Trust represents and their extended families, which, on an average of five persons per household, equates to about 850000 persons,” said Apla chief commander Sabelo Phama’s widow.
“The Trust and those who the Trust represents will suffer substantial prejudice in the event that the relief sought by the trust is not granted.”