In the bustling heart of South Africa, where soccer is more than a game, it's a religion, a financial drama is unfolding that threatens to shake the very foundations of one of the nation's most beloved clubs, Kaizer Chiefs. At the center of this storm is Bobby Motaung, the team manager, a man known for his flamboyant lifestyle and now, allegedly, for his mounting debts.
The story begins with a Joburg-based company, Pent Up Investment cc, taking legal action to sequestrate Bobby Motaung's estate. This isn't just a simple debt; it's a long-standing saga involving millions of rands and a commercial property deal gone wrong. Adding fuel to the fire, Pent Up Investment is also moving to attach Motaung's shares in Kaizer Chiefs for a second time, a move that could have significant implications for the club's ownership structure.
The seeds of this financial predicament were sown years ago, back when Christopher Couremetis, representing Pent Up Investment, and Bobby Motaung, acting for Lakeshore Trading 224, agreed on the sale of a commercial property in Mondeor, a suburb in southern Joburg. The property, strategically located near Gold Reef City, included a commercial building and a petrol station, a potentially lucrative investment. The agreed price was 9 million Rand, a substantial sum that Motaung's company, Lakeshore Trading 224, was expected to pay.
However, the deal soured when Lakeshore Trading 224 allegedly failed to make the full payment. This led Pent Up Investment to initiate legal proceedings, culminating in a court judgment in November 2009, ordering Motaung to pay over 9 million Rand, plus interest and legal costs. This marked the beginning of a protracted battle, characterized by meetings, negotiations, and a series of payments that never quite managed to settle the debt.
Over the next 14 years, numerous attempts were made to resolve the issue. Costas Couremetis, the boss at Pent Up Investment, recounts meeting with Motaung and his attorney, Nazeer Saley, in an effort to find a solution. Motaung made several payments, seemingly committed to reducing the debt. At one point, Pent Up Investment even placed Lakeshore Trading 224 in final liquidation, but further negotiations led to a settlement agreement, which was then formalized by the court.
Despite the agreement, Motaung's payments remained insufficient. By January 2024, the outstanding debt still stood at over 4.3 million Rand. Couremetis noted that while Motaung hadn't disputed the debt since the initial judgment, he had consistently failed to pay the full amount, even after being granted numerous extensions and concessions.
Adding a layer of intrigue to the story, Couremetis paints a picture of Motaung as a man living a lavish lifestyle, seemingly at odds with his financial struggles. He describes Motaung driving a Bentley, residing in a large property in Houghton, an affluent suburb, and sporting expensive clothing and watches. This image of a successful businessman, holding a prominent position at Kaizer Chiefs, contrasts sharply with the reality of his unpaid debt.
Couremetis claims that Motaung's failure to settle the debt constitutes an act of insolvency. He argues that despite having a substantial income and valuable assets, Motaung has not paid what he owes. According to Couremetis, Motaung has admitted that the reason for his failure to settle the debt is that he has other creditors to pay. Couremetis believes that if Motaung is sequestrated, he will no longer be able to prioritize other creditors over Pent Up Investment, something he has allegedly been doing for years.
Couremetis suggests that Motaung's financial problems stem from liquidity issues, exacerbated by his extravagant lifestyle. He believes that Motaung's assets exceed his debts but that his cash flow management is lacking. As an example, Couremetis mentions that Motaung's shares in Kaizer Holdings (Pty) Ltd, the owner of Kaizer Chiefs, were previously attached at Pent Up Investment's request in August 2010. However, further execution was halted due to payments and settlement talks. Couremetis argues that a trustee should be appointed to investigate the value of Motaung's interests in these entities.
In response to these allegations, Motaung claims that the matter is old news and has been resolved. However, Couremetis declined to comment further and referred inquiries to his lawyer, Claudio Bollo, who was unavailable for comment.
This isn't the first time Motaung's financial dealings have come under scrutiny. Back in 2017, reports surfaced that he was losing his 3.2-million Rand Bentley Continental GT to Wesbank. The bank allegedly labeled him a bad payer and initiated legal proceedings to recover the vehicle.
According to reports from that time, Wesbank took Motaung to the South Gauteng High Court in Johannesburg, alleging that he had defaulted on his monthly installments for almost a year. Court documents indicated that Motaung was in arrears of more than 500,000 Rand on his repayments and had an outstanding balance of 2.3-million Rand to be paid before he could assume full ownership of the car.
Wesbank requested the court to authorize the Sheriff of the Court to attach the vehicle, stating that Motaung was still in possession of the car despite the alleged non-payment. The court documents revealed that Motaung had signed an electronic agreement with Wesbank/First Rand Auto Receivables Limited in 2014 to purchase the 2013 Bentley Continental GT for 4,136,601.76 Rand, which included interest and finance charges exceeding 900,000 Rand.
The purchase agreement stipulated that Motaung would make an initial deposit of 700,000 Rand and pay monthly installments of approximately 48,000 Rand starting from 1 October 2014, with the intention of completing the payments in 72 months, (that is six years). Ownership of the car was to remain with Wesbank until the full amount of 4.1-million Rand had been paid.
Wesbank's attorney, Pierre Jacques De Waal Smit, informed the court that Motaung had reportedly breached the terms of the credit agreement by failing to make the required monthly installment payments. As of 5 September 2017, Motaung was allegedly in arrears in the amount of 539,577.25 Rand, with a balance outstanding of 2,347,447.57 Rand.
The bank claimed that Motaung had not surrendered the car, even after allegedly realizing that he was struggling to keep up with the installments. It was also alleged that Motaung was evading communication and had ignored several letters sent to him regarding the non-payment. The bank stated that Motaung had not heeded its advice to seek debt counseling in order to make payment arrangements.
According to Wesbank's affidavit, they had sent a letter to Motaung on 17 August 2017, proposing that he refer the credit agreement to a debt counselor, alternative dispute resolution agent, consumer court, or ombud with jurisdiction, with the intent to resolve any dispute or develop a payment plan. However, Motaung allegedly did not take action.
Adding to the list of Motaung's past financial woes, reports from 2012 indicate that he faced difficulties that led to him losing his multi-million shopping complex in Ormonde, south of Johannesburg, due to alleged unpaid debts with Investec Bank. Motaung was reportedly compelled to sell his business near Gold Reef City after allegedly failing to keep up with monthly installments on a loan.
Court documents from that period indicated that Investec had loaned Bobby's company, Lakeshore Trading 224, 9 million Rand in 2008 to purchase the complex, which included restaurants and a filling station. Motaung and his wife, Ashler Jessie Motaung, reportedly used their Houghton mansion as collateral for the loan.
He was supposedly required to pay monthly installments of 97,700 Rand for 59 months, along with a final installment of just over 4 million Rand. However, according to the court documents, Motaung allegedly began defaulting in 2009 after paying over 5 million Rand of the loan.
Investec then reportedly applied for judgment against him at the South Gauteng High Court and sought an order to wind up his company. Motaung allegedly managed to resolve the situation by selling the complex and repaying the loan.
Investec lawyer Barry Farber confirmed that Motaung had repaid the loan. Farber stated that due to attorney-client confidentiality, he was unable to discuss the details of the case in the media but confirmed that Motaung had paid his loan, and the matter was closed.
Before the loan was paid off, the bank was reportedly demanding over 4 million Rand plus interest from Motaung. A recoveries manager of Investec Bank Limited certified that Lakeshore Trading 224 was indebted to Investec for 4,159,950.28 Rand as of 23 April 2014, in respect of a loan agreement concluded under contract number 241800/001, together with costs and interest calculated at a rate of 11.25%.
These past incidents paint a picture of a man who has repeatedly faced financial challenges, often involving large sums of money and legal battles with financial institutions.
As the legal proceedings with Pent Up Investment continue, the future of Bobby Motaung's shares in Kaizer Chiefs hangs in the balance. The outcome of this case could have significant implications for the club, its ownership structure, and the legacy of one of South Africa's most prominent soccer figures.
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