Durban High Court orders sale of R35 million Sandown compound linked to Shauwn ‘MaMkhize’ Mkhize
The Durban High Court has authorised the sale of five adjoining properties in Sandown, Johannesburg, linked to businesswoman Shauwn “MaMkhize” Mkhize, after hearing that maintaining and guarding the compound was costing the South African Revenue Service (SARS) nearly R200,000 a month.
Handing down judgment, Judge Jacqueline Henriques ruled that the curator appointed to oversee the estates may proceed with selling the properties before a separate legal action determines whether SARS is entitled to execute against them. The proceeds from the sale will be held in a trust account until the dispute over entitlement is finalised, with SARS given one month to institute those proceedings.
“Paying tax is not a punishment; it is a responsibility,” Henriques said.
In granting the order, the judge dismissed objections brought by Mkhize and her son, Andile Mpisane, who contended that the tax collector's application lacked urgency and that selling the compound would strip them of their primary residence.
Mounting security costs, municipal debt, and damp damage
Court papers revealed that since the properties were placed under a preservation order in November 2024, the ongoing costs of securing and maintaining the estate had threatened to undermine the purpose of the preservation order itself.
According to SARS's founding papers, the revenue service was footing a monthly bill of R188,261.90 for round-the-clock private security at the properties, alongside R97,922.30 every six months for insurance, as the estates had been uninsured when initially preserved.
In addition to the security and insurance expenses, outstanding municipal charges on the properties had climbed to R1.79 million. A valuer inspecting the estate reported poor maintenance and damp damage, while the City of Johannesburg issued a contravention notice after discovering that building improvements had been erected across four of the properties without approved municipal building plans.
Henriques noted that none of the respondents had challenged the factual allegations presented by SARS, relying instead on preliminary legal objections. She found that the deteriorating state of the properties and the mounting financial obligations constituted valid commercial grounds for an urgent sale.
“I have considered the grounds for urgency relied on by SARS. I am of the view that these factors and reasons, as contained in the founding affidavit, constitute sufficient grounds of urgency – as there are commercial interests justifying urgency,” she ruled.
Beneficial ownership of the R35 million compound
Situated side by side in Sandown and operating as a single compound, the five properties carry a combined market value of R35 million and a forced-sale value of R24.5 million.
While four of the properties are registered under the name of Yaron Peretz and the fifth belongs to 22 Aston Investment (Pty) Ltd, Henriques found that on a balance of probabilities, SARS had established sufficient grounds to show that Mkhize was the beneficial owner.
Evidence presented to the court showed that Mkhize and the Zikhulise Group had paid most of the purchase price for the properties, while Peretz had previously testified during a tax inquiry that all negotiations for the properties were conducted through Mkhize.
Mkhize currently owes SARS R13.3 million in personal income tax and is also personally liable for the R112.5 million tax debt owed by the Zikhulise Group, of which she is both a trustee and a beneficiary. To date, SARS has recouped R6.1 million by auctioning off luxury vehicles, designer handbags, and other movable assets seized from the properties.
Primary residence arguments dismissed
During the hearing, Mpisane argued that the Sandown compound served as his primary residence. However, Judge Henriques pointed out that his own court papers listed his residential address as a property in La Lucia, KwaZulu-Natal, demonstrating that he and his family had alternative accommodation available.
Similarly, the court found that Mkhize had at least seven other properties she could occupy and would not be left without a home.
“I am therefore satisfied that she would not be prejudiced by such sales to the extent that she has alternative accommodation,” Henriques said, rejecting claims that the sale amounted to an arbitrary deprivation of property.
Mkhize, Mpisane, 22 Aston Investment, and 56 Adrianne Street (Pty) Ltd were ordered to pay the legal costs of the application jointly and severally, including the costs of two counsel on Scale C.