DJ Cleo fails to fulfil a contractual agreement with a commercial bank that gave him a home loan worth more than R1 million.
A claim brought to the Johannesburg High Court this month by financial entity Standard Bank shows that the legendary hitmaker, real name Tlou Cleopas Monyepao allegedly breached his financial obligations towards the agreement, which also involved his iconic recording company, Will of Steel Productions, as the first respondent.
According to a claim by the bank. DJ Cleo was awarded Monyepao the sum of R1 104 000.00 in May 2006 with the agreement that he would pay R9 511.01 in monthly instalments for 240 months.
The bank further cites that it took legal action as a result of Monyepao’s alleged failure to keep up with monthly payments and his account lagging with a sum of R61 972.22 as of October last year.
The claim read:
The second defendant (Tlou Cleopas Monyepao) was required to remedy his breach of the deed of suretyship by making payment of the arrears and all overdue amounts under the loan agreement to the plaintiff (Standard Bank).
The commercial entity also shows that attempts to have Monyepao fulfil his contractual obligations have failed, as he has not responded to a letter of demand sent to him.
“The plaintiff has placed 20 telephone calls to the defendants to discuss bringing the defendants’ arrears under the loan agreement up to date. Despite the plaintiff’s attempts, the defendants failed to conclude a payment arrangement with the plaintiff, alternatively failed to adhere to the payment arrangement concluded between them, and legal action against the defendants commenced…
“The default notices have been delivered to the post office responsible for service to the defendants’ address,” read the claim.
Monyepao could also face a writ of execution order from the same court if he fails to oppose the action or settle his debt.
“The property was given as security for the first defendant’s debt, the payment information and history of the loan agreement is as follows: The current monthly instalment was, as of February 1 2023, the amount of R10 573.28.”
The papers add that, according to the information at the disposal of the bank, Monyepao is employed and is able to fulfil his contractual obligation.
“The amount owed by the defendants is substantial and the property is the only tangible security which the plaintiff holds for the payment. Consequently, the plaintiff will be prejudiced if it cannot recover the amounts due to it by executing against the property,” the papers continued.
DJ Cleo could not be reached for comment. Citypress