These damning claims are at the heart of a legal battle with the South African Revenue Service (Sars), which is now demanding R12 million from Ngubo and has seized her assets, leaving her and her husband financially devastated.
The allegations are contained in Ngubo's application to oppose the granting of a final preservation order sought by Sars in the Durban High Court. In an affidavit filed on Wednesday, Ngubo, who was registered as the owner of the soccer club and private company Lungza Management Consultants, claims her involvement existed only on paper.
According to Ngubo, she was allegedly used as a front by Mkhize while she was recovering from a hysterectomy and battling complications from Covid-19, which she contracted in 2020. This period of ill-health, she claims, left her vulnerable and unaware of the extent to which her identity was being used.
"I had no control at all, not only because of the fact that I did not purchase the club or request to be removed from Lungza, but also because of the depressive sequelae of the hysterectomy procedure I had undertaken and also because of complications from Covid-19 that I had contracted in 2020," Ngubo stated in her affidavit. She further asserted that she was unaware, and would have had no way of knowing, about the substantial amount of taxes she allegedly owes as a result of these entities.
Sars is seeking R12 million from Ngubo and has already attached her movable assets and bank accounts, including those of her husband, Mvusi. Their accounts have been frozen, leaving them struggling to meet their basic needs.
It is alleged that Mkhize used her sister’s details to register and operate companies because she was allegedly hiding assets from her husband, Sbu Mpisane, who is demanding half of the estate in their ongoing divorce proceedings. Sars has already attached several properties and luxury vehicles belonging to Mkhize, including a Bentley, a Mercedes-Benz V-Class Maybach bus, several BMWs, and bakkies, as they seek to recover nearly R40 million in unpaid taxes. This includes her football club Royal AM and her other companies.
Ngubo claims Sars was aware that she had been used as a front and that the sheriffs were not supposed to have seized assets at the property belonging to her in-laws. "I must, however, point out that the address is that of my in-laws and some of the assets removed belong to my in-laws or their children. In respect of the entities such as Igugu Logcwabe Business Enterprise, Ukwakhiwa Group and Mamkhize Foundation, my name may have been used without my knowledge as I do not recall my involvement in such entities," Ngubo's affidavit stated.
The sheriffs appointed by Sars seized a vast array of Ngubo’s possessions, including all furniture, artwork, chandeliers and light fittings, the security system with cameras and monitors, all koi fish in the pond, 30 cattle, 25 sheep, and 10 goats. The scale of the seizure highlights the devastating impact the tax dispute is having on Ngubo's life.
Ngubo’s husband, Mvusi, also filed a supporting affidavit pleading with the revenue collector, saying he had nothing left to his name. He described himself as an elderly man asking for the preservation order to be removed so that he could be allowed to use his pension to pay for his upkeep and pay maintenance for his children. "The only car listed in my name is a scrap 1994 Toyota Hilux, which is in a scrapyard and is of little or no value to be hidden or disposed of," Mvusi Ngubo stated, underscoring their dire financial situation.
Ngubo’s vehicle – a Range Rover – was among other items seized by Sars and was recently sold at an auction for a mere R4 000. She argues that Sars' intent is not to recover the full amount of the estimated tax amount that she allegedly owed, but rather simply to deprive her of the vehicle. "If the sale in execution was truly aimed at recovering the full amount, I submit that the Range Rover would have been sold at a much higher value or reasonable value, not R4 000. In fact, on websites of car dealerships such as WeBuyCars, a Range Rover similar to the one sold by the applicant for R4 000 retails at R199 900," she wrote.
Ngubo maintains that Sars has no basis to preserve her assets or the assets of her trust or her husband. She insists that she has not attempted to hide any assets and that her tax liability is based on estimates, not concrete evidence.
"I am not responsible for the tax debts of entities such as Lungza and Royal AM as I had no de facto control of those entities. Sars has in fact previously sold my assets below reasonable value through a sale in execution – it sold my Range Rover at R4 000 even when one tyre of a Range Rover costs way more than R4 000," Ngubo stated.
Ngubo claims that she did not agree to the purchase nor to the operation of the club under her name. She maintains that, as soon as she became aware that the club was in her name and that a bank account was being operated under her name, she immediately requested that Mkhize remove her name from all related documentation and accounts.
The case raises serious questions about Mkhize's business practices and the extent to which she allegedly exploited her sister's identity for personal gain. The legal battle is set to continue in the Durban High Court, where Ngubo will fight to have her assets released and her name cleared from the tax liabilities associated with Royal AM and Lungza Management Consultants.
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