Edwin Sodi's Mounting Debts: Auction Looms as Credit Card Bills Pile Up
Johannesburg – Flamboyant businessman Edwin Sodi is teetering on the brink of a potential auction as his financial woes deepen. He faces the possible sale of his assets to settle a debt of R570 248 in unpaid credit card bills. This comes on top of existing legal battles, including a R24 million divorce settlement owed to his estranged wife, Nthateng Lerata, and ongoing money laundering and corruption charges related to a Free State asbestos removal tender.
A Sheriff of the Johannesburg High Court has been unable to serve Sodi with legal papers since March 2024. This has stalled the bank’s application for a default judgment against him. "The bank applied for a default judgment against him in March; the case has not been heard because we have not been able to confirm that he has received papers," the Sheriff stated.
The seeds of Sodi's current financial predicament may have been sown during a luxury shopping spree in London towards the end of 2023. It appears that Sodi's spending habits, fuelled by credit card bills and an overdraft facility with Nedbank, included lavish stays in hotels costing R18 000 per night and a R40 000 splurge at Louis Vuitton.
City Press understands that the Johannesburg High Court Sheriff has been trying to serve Sodi with a writ of execution, threatening to auction his assets to recoup the debt, following a court application in March to compel him to repay the outstanding amount.
The bank's claim states, "Sodi is indebted to the bank as of 26 August 2024 in the amount of R570 248. Despite demand, he has failed or refused to pay the amount due and payable to the bank."
According to the Sheriff, numerous attempts have been made to reach Sodi at his Sandton premises since March, all without success.
City Press reported in March that the bank had initiated legal action, asserting that, as per their agreement, Sodi is liable for all outstanding amounts and associated legal costs. The court papers also indicate that Sodi received statements detailing the amounts he owed to the bank.
The court papers reveal that "The bank further wants the court to order that the credit card be returned to it by Sodi due to the alleged nonpayment." The bank maintains that it "would have the right to close the account, cancel the card facility and demand that the full outstanding payment and interest be paid immediately when he is in breach of the agreement."
Adding to his troubles, Sodi is also embroiled in a dispute with his estranged wife, Nthateng Lerata. In August last year, City Press reported that Lerata had taken legal action against Sodi, accusing him of failing to honour a court order to pay her a R24 million divorce settlement.
A source close to the couple revealed that Sodi has allegedly failed to pay the stipulated amount, despite an execution order and a contempt of court judgment looming over him. Lerata alleges that Sodi is "committing an act of disobedience by failing to comply with the order."
Furthermore, Sodi has pleaded not guilty to charges of money laundering, fraud, and corruption in the Free State High Court. These charges are linked to the controversial R255 million Free State asbestos removal tender awarded in 2014 to a joint venture between Sodi’s Blackhead Consulting and Diamond Hill Trading, owned by the late businessman Igo Mpambani.
The state alleges that the contract was irregularly awarded, with kickbacks exchanged. It is alleged that instead of properly removing asbestos from around 30 000 homes, only R21 million worth of work was completed, with the remaining funds allegedly misappropriated.
Despite multiple attempts to reach him, Sodi has not responded to requests for comment.
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