Two controversial businessmen — whose names have surfaced in explosive testimony at the Madlanga commission — are preparing to face off in court over a R2.9m debt.
Vhazwimi Factors, a company operated by Steve Motsumi, has filed papers in the Johannesburg high court, claiming that politically connected businessman Ze Nxumalo has defaulted on debt repayments.
Motsumi has been linked to suspended deputy national police commissioner Lt-Gen Shadrack Sibiya, and KwaZulu-Natal police commissioner Lt-Gen Nhlanhla Mkhwanazi has described him as one of South Africa’s most feared crime bosses who allegedly controls government officials, business tenders and narcotics.
Nxumalo was revealed by the Sunday Times last week as being the middleman in a R3.35m chartered jet trip for former Ekurhuleni city manager Imogen Mashazi by a company with an estimated R500m in contracts with the city.
According to testimony at the commission, Motsumi and Nxumalo are “closely linked”. It is believed they know each other through work they did previously in the taxi industry.
However, the two appear to have fallen out over money.
Court papers filed by Vhazwimi on May 25 place Nxumalo’s Morningside property at the centre of a debt recovery battle that could ultimately spill into property attachment proceedings if judgment is granted
Vhazwimi Factors has moved to enforce a personal suretyship against Nxumalo after alleging that Zig Property Management failed to settle debt amounting to R2.9m linked to money “lent and advanced” to the property business.
Court papers filed by Vhazwimi on May 25 place Nxumalo’s Morningside property at the centre of a debt recovery battle that could ultimately spill into property attachment proceedings if judgment is granted.
According to the particulars of the claim, the dispute stems from a factoring agreement concluded between Vhazwimi Factors and Nxumalo’s company Zig Property Management.
The creditor alleges that by February, Zig had accumulated debt amounting to R2.9m linked to money allegedly advanced to it.
The papers show Nxumalo allegedly signed a deed of suretyship — a move that allows the creditor to pursue him personally.
“The surety binds and interposes himself as surety and co-principal debtor jointly and severally with the debtor for the debtor’s indebtedness generally to the creditor,” read the papers.
The claim further reveals that attorneys acting for Vhazwimi Factors moved formally against Nxumalo in April.
In a letter sent by Fluxmans Attorneys, lawyer Charles Shapiro warned Nxumalo that legal proceedings would follow if payment arrangements were not made within seven days.
“Please be advised that if Zig Property Management has not made arrangements for the payment of the indebtedness within seven days from the date hereof, a summons will be issued against you in your capacity as surety,” read the papers.
Court documents show that days after receiving the demand, Nxumalo personally e-mailed Shapiro requesting a payment arrangement on behalf of Zig Property Management.
The e-mail sought time to settle it in instalments stretching from May to July.
“I’m humbly asking for a payment arrangement to be done with your client on the outstanding amount. R500,000: 8 May 2026; R500,000: 30 May 2026; R1,000,000: 30 June 2026; negotiated balance: 31 July 2026,” read the e-mail.
But the proposed arrangement appears to have collapsed almost immediately.
According to the particulars of the claim, Zig Property Management failed to honour the payment commitments.
Notwithstanding the acceptance of the payment arrangement on April 30 ... the principal debtor failed to make payment as agreed or at all. The principal debtor is in insolvent circumstances and thus is manifestly unable to meet its obligations. You will be deemed unable to pay your debts and be liable to be placed under compulsory liquidation by order of the high court of South Africa
— Claim
Vhazwimi further alleges that the company is effectively insolvent and incapable of meeting its obligations.
To reinforce that position, the papers include a statutory demand issued in terms of section 345 of the Companies Act, a step commonly associated with looming liquidation proceedings.
“Notwithstanding the acceptance of the payment arrangement on April 30 ... the principal debtor failed to make payment as agreed or at all. The principal debtor is in insolvent circumstances and thus is manifestly unable to meet its obligations. You will be deemed unable to pay your debts and be liable to be placed under compulsory liquidation by order of the high court of South Africa,” read the claim.
The summons ultimately seeks judgment against Nxumalo personally for the full R2.9m, interest and legal costs on an attorney-and-client scale, together with further relief.
Should Vhazwimi ultimately secure judgment and fail to recover payment voluntarily, the battle may shift from legal papers to property attachment proceedings.
Motsumi hung up when contacted for comment by the Sunday Times.
Nxumalo also declined to comment.
Organised crime unit head Maj-Gen Richard Shibiri told the Madlanga commission during his testimony in April that he feared Motsumi and described him as being closely linked to Nxumalo.
“Motsumi was close to Ze Nxumalo, who he described as a Zulu guy who lives in Sandton,” said Shibiri, who was axed this week over his testimony, in which he admitted he had taken a loan from another alleged crime boss Vusimusi “Cat” Matlala.
And Mkhwanazi told parliament’s ad hoc committee investigating serious allegations of police corruption that Motsumi is a character whose name police are even afraid to utter.
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