A company CEO is taking a woman half his age to the high court accusing her of “gross ingratitude” for breaching a confidential agreement in which he agreed to pay her R10m to keep the details of their relationship under wraps.
Ronny Katz, 80, the founder and CEO of employment and staffing services group Workforce Holdings, says in court papers theirs was a “relationship which mimicked and mirrored the relationship between a father (or father figure) and daughter”. It included “the aspects of friendship, guidance, financial support as well as emotional support”, and was “consensual and not of a sexual nature”.
But in responding papers she has accused him of sexual abuse and threatening “to destroy and kill” her. She said he constantly made “sexual advances and innuendos”, and inundated her with “pornographic telephone calls” — claims he denies and says are defamatory.
The woman, 36, cannot be named because of her claims she was sexually abused.
Explosive claims and counterclaims are contained in the lawsuit filed in Gauteng. In the court papers, Katz says he entered into a “written deed of donation” with the woman in March last year.
According to the agreement, he would donate R5m to the woman for her “future well-being [and] her future financial security”. The donation would be invested wisely. He would donate a further R5m, for the same purpose, by September 15 2022.
“The [woman] agreed and undertook that both amounts donated to her by the plaintiff as well as the relationship established between the parties would be kept and remain confidential,” the court documents read.
“Were the [woman] to breach any of the terms or conditions of the deed of donation and/or breach the modus for which the money was donated to [her] by the plaintiff, she would be required to repay the money.”
The [woman] agreed and undertook that both amounts donated to her by the plaintiff as well as the relationship established between the parties would be kept and remain confidential.
— Court documents
Katz paid the first R5m into an Investec account, but alleged she breached the agreement by not investing the money. Instead, he said, she withdrew it all and “disclosed the relationship” to his company’s CFO in “breach of her confidentiality undertaking”.
He said she was “guilty of gross ingratitude”. Katz strongly asserted that she had made false and defamatory statements when she accused him of sexual abuse, and had threatened to make false and defamatory statements about him to the board of the company and destroy his business.
He argued that, owing to the breach, he was “entitled to revoke the donation and did so on or about 30 November 2022”. The second donation did not materialise, and she failed to repay the R5m.
He asked the court to compel her to repay it at “the rate of 9% per annum calculated from 30 November 2022 to date of final payment”. But she fired a broadside with a counterclaim.
She admitted the deed of donation existed, but denied it included the “implied terms and conditions”.
“The deed of donation does not in any way prevent me from withdrawing the funds from my account. I admit having withdrawn the funds,” the court documents read.
She also admitted telling the CFO about the alleged abuse she suffered at Katz's hands — and maintains her claims are “true and correct”. She alleged Katz “attempted to get on top of [her] while she was lying on her back, despite [her] requesting him not to do so and to desist [from] such behaviour”.
She also said he had forced her against a wall at her residence, attempted to groom her as his lover, and wanted her to be financially dependent on him.
She felt constantly degraded by Katz in an “attempt to make [her] psychologically and emotionally dependant on him”. He constantly said he “loved” her.
She said he exhibited “extreme, controlling and abusive behaviour, including forbidding [her] from other relationships with men and isolating [her] from [her] family and friends”.
She accused the executive of making constant “pornographic telephone calls”, including “one instance when he informed [her] that ‘he had [a] hard-on saying [it was] about [her]’”. She said he continued with the behaviour despite her having asked him “to desist” from it.
“My refusal to pay [back] the sum of R5m is admitted,” the court documents read.
“The plaintiff is, however, indebted to me in the amount of R5m, as he [has] not complied with his obligations contained in the deed of donation.”
Katz denied the allegations and said the “statements and demands made by [the woman] amounted to threats and attempts to extort money from [him]”. This week, his lawyer said he “stood by his pleadings in the litigation”.
“At present, the defamatory statements have not been published and have been read by a limited number of persons,” his lawyer said. “All our client’s rights are expressly reserved.”
The woman’s lawyer declined to comment.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.