Mzi Khumalo loses drawn-out legal battle over forex violations
The mining magnate has to forfeit R1bn in shares and assets as he violated exchange control laws when negotiating a R760m loan with Deutsche Bank
Mining magnate Mzi Khumalo has lost his drawn-out legal battle against a decision by the SA Reserve Bank to forfeit his assets and shares worth R1bn. Yesterday, judge Hans Fabricius ruled against Khumalo in an application he brought in November 2011. At the time, the Bank had served Khumalo — a former Umkhonto weSizwe operative and empowerment partner of the late Brett Kebble — with the order of forfeiture on the grounds that he had flouted exchange control laws. The Bank found that Khumalo violated exchange control laws when he negotiated a loan of R760m with Deutsche Bank London for his Mawenzi Resources and Finance Company. The flouting of laws related to how Khumalo pledged shares he had bought from Harmony Gold in a black economic empowerment scheme to Deutsche Bank. Read the full story on Sowetan LIVE here. TMG Digital
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