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IOL News
4 days ago
- Business
- IOL News
Malawian man accuses Nedbank of reckless lending as court rules bank can repossess Sunninghill home due R2. 6 million debt
A Malawian man who has been unable to meet his bond payments has accused Nedbank of reckless lending after owing over R2.6 million. Image: Tracey Adams/Independent Newspapers A Malawian man who has been unable to meet his monthly bond payments has accused Nedbank of reckless lending after owing over R2.6 million on his home loan. Bonface Tintin Ndawala, an accountant and a CEO of a mobile company in his home country, bought his home in Sunninghill, Johannesburg in October 2011. He purchased his home with a bank loan of R2.4 million. Initially, Ndawala was responsible for paying R27,559.62 each month, but his last payment was made in August 2021, amounting to R20,221.14. The failure to maintain payment resulted in arrears exceeding R977,000. In court, Ndawala represented himself after his attorney withdrew a few hours before the hearing. He told the court that he holds 5,400 shares valued at R1,000 each in Midveldt Investments (Pty) Ltd, which he claimed could be sold to alleviate his financial burden. However, Nedbank said Ndawala failed to attach an evaluation certificate from an actuary or other accountant to confirm the value of those shares. This argument was accepted by Acting Judge JL Bhengu who said given the fact that Ndawala's indebtedness spans from 2021, he should have at least taken steps to sell his shares to cover his debts, if indeed the shares are worth that much. "It is unreasonable for Mr Ndawala to expect the creditor to undertake the exercise of verifying the existence of the shares when he cannot do it himself, despite such information falling within his personal knowledge," said the judge. Moreover, Ndawala explained that as a CEO, he was in the process of finalising an agreement with a potential investor where he could raise over R200 million and this would have allowed him to pay the arrears in one go. He complained that because he was not legally represented, he was unable to bring proof of the contract and license of the business that he was referring to. Dissatisfied with his explanation, the judge said Ndawala's complaints had no merit because he was always legally represented throughout the proceedings up until a few hours before the hearing. His other defence was that the bank's interest charges were exorbitant, and the bank failed to assess his financial position at the time of granting the loan, amounting to reckless lending. This argument was also thwarted by the judge due to the fact that at the time he applied for the bond, he was employed by Cell C and earned over R200,000. "There is no explanation from Mr Ndawala why he agreed to these terms of the loan, only to challenge them almost 13 years later when he is having financial difficulties. It is trite that contracting parties cannot escape the enforcement of contractual terms on the basis that enforcement would be disproportionate or unfair in the circumstances," said the judge. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Upon reviewing the evidence, the court considered the fact Ndawala owned a home loan exceeding R2.6 million and was in arrears of over R977,000, with the amount still increasing. With these facts, the judge deemed it appropriate to declare the property to be repossessed by the bank. "I am of the view that foreclosure will also assist Mr Ndawala to alleviate the escalating indebtedness not only on the home loan but also towards other creditors like the municipality and the homeowner's association." In May 2023, a property evaluator valued the property at R2.8 million, whereas the municipality valued it at R2.6 million. Conversely, the bank suggested a sale price of R2.2 million, which the judge deemed fair, taking into account the outstanding amounts owed to the municipality and the Homeowners Association. However, Ndawala contended that the property was worth over R5 million. He said R2,2 million was too low and argued that R4 million was more reasonable. Ndawala's argument was dismissed because his finding was not supported by a property evaluator. In contrast, the bank relied on independent evaluators to support their position. Despite ruling in favour of the bank, the judge suspended the order for six months to give Ndawala enough time to finalise the deal which he claimed would settle all his debts at one go. "I decided to grant him the benefit of the doubt by suspending the operation of the order for six months in order to give him a fair chance to bring his arrears up to date," read the judgment. The judgment was made in June 2024, and the reasons were not written. In July 2025, Nedbank approached the judge to request written reasons that informed the ruling. The reason for this request was because Ndawala had submitted an application for leave to appeal the judgment. IOL News Get your news on the go, click here to join the IOL News WhatsApp channel
News24
7 days ago
- Automotive
- News24
Volkswagen takes R27bn global hit from Trump tariffs
For more financial news, go to the News24 Business front page. German auto giant Volkswagen said Friday that tariffs imposed by US President Donald Trump had cost it 1.3 billion (R27 billion) euros in the first half of the year as it reported falling profit. Overall net profit fell 38.5 percent year-on-year during the period to hit 7.28 billion euros (R150 billion). Higher-sales of lower-margin electric vehicles (EVs) as well as restructuring costs hit the result in addition to the tariffs, Volkswagen said. Finance chief Arno Antlitz said Volkswagen was nevertheless "on the right track" and that performance was at the "upper end of expectations", if tariffs and restructuring costs are excluded. The firm struck an unprecedented deal with unions last December to cut 35 000 jobs in Germany by 2030 as part of plans to save 15 billion euros a year. The 10-brand group also cut its revenue and profit outlook, warning of "political uncertainty and increased barriers to trade" for the remainder of the year. It now forecasts a profit margin for the year of between 4 and 5 percent, down from 5.5 to 6.5 percent previously, amounting to billions of euros for the firm. The range assumes that the United States will continue to levy tariffs of 10 percent on imported cars in the best case and stick to its current rate of 27.5 percent in the worst, Volkswagen said. Volkswagen's previous guidance, released in April shortly after new US tariffs took effect, did not take the increased duties into account. Sales by volume in North America fell 16 percent "mainly due to tariffs" in the first half even as they rose slightly worldwide, Volkswagen said. Trump in April slapped an additional 25-percent levy on imported cars as part of an aggressive trade policy he says will help boost US manufacturing. That has hit European carmakers. French group Stellantis - whose brands include Jeep, Citroen and Fiat - said on Monday that North American vehicle sales by volume plunged 25 percent in the second quarter of the year. US and European Union diplomats are currently negotiating ahead of the latest deadline set by Trump, with Trump threatening a blanket duty of 30 percent after August 1 if no agreement is reached.
TimesLIVE
7 days ago
- Automotive
- TimesLIVE
China's BYD to assemble EVs in Pakistan from 2026
Chinese electric vehicle giant BYD plans to roll out its first car assembled in Pakistan by July or August 2026 to capture growing demand for electric and plug-in hybrid vehicles in the region, a company executive said on Wednesday. BYD, the world's top EV maker, has been expanding rapidly outside its home market, where it is in a strong price war. The Pakistan plant addresses rising demand from emerging markets and allows the company to take advantage of incentives offered by the Pakistani government. The plant has been under construction since April near Karachi in a partnership between BYD and Mega Motor Company, a subsidiary of Pakistani utility Hub Power, Danish Khaliq, vice president of sales and strategy at BYD Pakistan, told Reuters. It would initially have the capacity to produce 25,000 units a year on a double shift, he said. He did not elaborate on when the plant would achieve full capacity or when mass production would begin. The plant will start by assembling imported parts, with some local production of non-electric components, Khaliq said, adding it would initially produce vehicles for the domestic market with potential to export to right-hand drive countries in the region depending on freight costs and business economics. "We do not foresee excess capacity in our system as demand in Pakistan will catch up," he said. BYD started delivering imported EVs in Pakistan in March. Khaliq did not give an exact sales number but said the sales of a few hundred cars had exceeded internal targets by 30%. Khaliq said he expected the market size of EVs and plug-in hybrid cars in Pakistan to grow three to four times in 2025 from around 1,000 total units in 2024. BYD is targeting a 30-35% share of the segment, Khaliq said. Based on a Hubco filing, BYD Pakistan made around ₹444m (R27,552,018) in profit in the 2025 March quarter. BYD will launch its Shark 6 plug-in hybrid pickup truck in Pakistan on Friday. China's MG sells a PHEV SUV, and rival Haval is set to join the segment soon. Plug-in hybrids offer a more practical option in Pakistan as the country faces a lack of charging stations for all-electric vehicles. The government slashed power tariffs for chargers by 45% in January to encourage EV uptake and private charging stations.
The Citizen
15-07-2025
- Business
- The Citizen
SA losing nearly R30bn to illicit cigarettes as Sars tools face delays, says Godongwana
Illicit cigarette trade has become a major economic and enforcement issue. Efforts by the South African Revenue Service (Sars) to curb the illicit cigarette trade have been hampered by delays, with South Africa losing nearly R30 billion over the last five years. This was revealed by Finance Minister Enoch Godongwana in a parliamentary reply. EFF MP Thapelo Mogale asked the minister to disclose the total revenue lost as a result of cigarette smuggling and the illicit trade. He also requested information on the measures introduced to tackle the issue and how effective these have been in recovering lost tax income and ensuring offenders are prosecuted. Godongwana on illicit cigarette trade losses In his written reply, Godongwana said illicit trade and smuggling are 'hard to reliably quantify' given their covert nature. However, he pointed out that the illicit cigarette trade has become a major economic and enforcement issue, with estimates indicating that as much as 70% of cigarettes sold in the country are illegal. This has resulted in annual tax revenue losses exceeding R27 billion. ALSO READ: Illicit tobacco sales a drag on excise tax collections The minister explained that according to Sars data, revenue from tobacco and cigarette products dropped from R13.4 billion in 2015-16 financial year to R9.4 billion in 2024-25, a 29.6% (R4 billion) decline over ten years. The most notable drop, of 44.9%, occurred in 2020-21 due to the cigarette ban during the Covid-19 lockdown. Sars measures against illicit cigarette trade Sars, Godongwana highlighted, has implemented a multifaceted strategy to combat the scourge of illicit trade of tobacco and cigarettes. He said the tax authority has adopted a long-term strategic approach that includes frontline interventions, targeted audits, and the use of advanced technology. Regarding frontline operations, the minister explained that seizures of illicit cigarettes are being conducted at various ports of entry by customs border operations teams, in collaboration with other government agencies. These efforts also extend to inland areas. 'This ensures that Sars does not only focus on revenue recoveries, but [also on] removing illicit goods from circulation.' READ MORE: SA loses R30 billion in revenue due to illicit trade in cigarettes and liquor He emphasised that compliance audits are prioritised, covering the entire value chain, to ensure adherence to relevant laws. 'This methodology enables an end-to-end audit of the entire value chain and ensures that a company is scrutinised from the point of raw material supply, its entry into the manufacturing warehouse, to calculating how many cigarettes could be produced at any given time, considering the appropriate yield and capacity analysis.' Godongwana pointed out that Sars has integrated data and advanced technologies to monitor the tobacco supply chain and detect illicit activities. This involves the use of CCTV surveillance at manufacturing facilities to monitor production and prevent tax evasion. However, this initiative has faced delays due to legal challenges from certain industry stakeholders. 'As a stop-gap measure, Sars intends placing inspectors at these factories, on a full-time basis, depending on the availability of funding and budget. 'In addition, cigarette counters were made mandatory for all licensed manufacturers to assist Sars with production statistics.' Investigations and arrests Another tool in the fight against illicit trade is Sars' criminal investigation unit, which was established to probe complex tax evasion schemes. Godongwana said the unit continues to investigate cases involving tax non-compliance, smuggling, diversion, ghost exports, and misdeclarations, especially in high-risk industries such as tobacco and cigarettes. The minister revealed that international trade agreements and tools are being used to improve intelligence sharing and strengthen enforcement against illicit trade. He highlighted specific enforcement successes, including arrests and prosecutions. READ MORE: JMPD cracks down on illicit cigarette smuggling in Brixton The Sars criminal investigation unit has handed 129 customs and excise-related cases to the National Prosecuting Authority (NPA) over the past five years. Currently, 105 of these are on the NPA roll, with 33 currently on trial and 72 awaiting trial dates. Eight of these cases specifically involve illicit cigarettes and tobacco. Four are currently on trial, while the remaining four are pending trial dates. Godongwana added that 32 customs and excise cases have resulted in successful convictions.
The South African
15-07-2025
- Business
- The South African
Here's HOW much fraudulent ghost tokens cost ESKOM annually
Eskom has probed the illicit creation, transfer and use of ghost tokens in South Africa, and the numbers are worryingly high. Leaders say the state-owned entity needs to get on top of these illegal ghost tokens being distributed countrywide. Essentially, they allow the user free electricity, and it is costing Eskom and South African taxpayers billions annually. Electricity expert, Chris Yelland, believes these counterfeit ghost tokens cost Eskom as much as R27 billion every year. Additionally, this is over and above a recent investigation into procurement fraud at Eskom at the start of 2025. Investigators found R180 million in kickbacks for contracts at certain power stations. The state-run power utility absorbs the cost of ghost tokens three-fold. Image: File For those who are unaware, Eskom ghost tokens are created through unauthorised access to Eskom's Online Vending System (OVS). The aforementioned requires direct collusion with corrupt Eskom insiders. It has been reported that Eskom insiders have compromised the OVS to create and sell fraudulent ghost tokens. They are able to gain unauthorised access to the system and generate legitimate tokens. These are then sold to both suspecting and unsuspecting customers, often at a wildly discounted rate. Worse still, the money goes directly to the fraudsters … A lack of revenue, producing electricity for free and then redirecting resources to combat the scourge has seen prices increase 450% in two decades. Image: File Furthermore, because these ghost tokens are not tied to any legitimate transaction, the revenue generated does not go back to Eskom. Essentially, this doubles the overall revenue loss for government and ensures that ghost tokens are not a victimless crime. Plus, the state-owned entities efforts to address the constant breaches diverts critical resources away from keeping the lights on. Yellend further explains, in low-income areas like Soweto, as much as 80% of the electricity delivered by Eskom is not paid for. Municipal arrears from this persistent non-payment now exceeds R100 billion. The power utility needs to make this shortfall up somehow, often with the only recourse being increased tariffs for paying customers. Between 2007 and 2025, the cost of electricity has risen 450%. Free electricity is available to qualifying households, but the uptake is dropping each year. Image: File Meanwhile, Stats SA has revealed some telling data on the decline of indigent households taking advantage of Free Basic Services at the same time. Between 2014 to 2024, the number of residents getting free electricity dropped from 25% to 14%. And yet, 80% of South African households – an estimated 5.4-million residents – are eligible for the service but choose not to receive it. Some households qualify for 100% subsidies, while others only qualify for less, depending on the criteria set. On average, free basic electricity and water includes 50 kWh of power and 6 000 litres of water per month. Contact your local municipality for more details in your area if you think you qualify. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
