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KHUMALO TOLD TO HONOUR FRENCH ARBITRATION AWARD
The Sunday Independent (South Africa)
May 25, 2014
by LOYISO SIDIMBA
TOP businessman Mzi Khumalo has been ordered to pay more than |R53
million to his Lebanese associate over the sale of shares and a mining
deal that went wrong in Armenia.
Lebanese businessman Pierre Fattouch won a bid in the South Gauteng
High Court to have a Parisian arbitration award recognised and enforced
in South Africa.
Court papers filed by Fattouch say he and Khumalo reached an agreement
in March 2009 for Khumalo to pay US$5m in four instalments of US$1.25m.
Khumalo's bill is likely to top R77m as he has also been ordered to
pay |9 percent in annual interest from April 2009 until the date of
final payment.
He must pay Fattouch's legal costs, according to the ruling, delivered
by Judge Sherise Weiner on May 6.
Fattouch approached the high court in South Africa in 2012 after
Khumalo failed to pay him in accordance with the award. Khumalo had
between April and September 2009 to pay Fattouch.
The battle between the two millionaires dates back to May 2006 when
Fattouch and Khumalo, through Rosario International Investments,
entered into a written sale of shares agreement. Two years later,
there was a dispute and the matter was referred to arbitration.
After winning the French arbitration, Fattouch applied to the South
Gauteng High Court to have the award made an order of the court.
Khumalo, one of South Africa's richest businessmen and a former
Umkhonto we Sizwe operative, then insisted that Fattouch put up
security for costs with the high court's registrar and the Lebanese
tycoon complied.
In court Khumalo claimed he had a pactum de non petendo (agreement not
to sue) with Fattouch who had undertaken not to proceed with litigation
until he, Fattouch, had obtained two mining licences in Armenia.
Khumalo said it did not make sense for him to pay the amount Fattouch
claimed if Fattouch was unable to obtain the licences.
Fattouch is president of the Armenia-Lebanon Friendship Association
and owns Armenia's Karabakh Telecom, which trades as VivaCell,
through the Fattouch Investment Group.
VivaCell is one of two mobile operators in Armenia and has been
operating there since July 2005.
Khumalo had also undertaken to pay Fattouch in terms of the arbitral
award, according to court papers.
Weiner said in her judgment: "There is no mention of any agreement
that the applicant (Fattouch) would not proceed pending the obtaining
of the licences in Armenia".
Khumalo also argued that Fattouch needed Finance Minister Pravin
Gordhan's permission to enforce foreign arbitration awards in terms
of the Protection of Businesses Act.
Weiner said the requirement to seek Gordhan's permission needed to be
analysed to ascertain whether it was in conflict with the constitution.
She said she would be able to decide on the facts before her and
that to adjudicate on the constitutionality of the Protection of
Businesses Act Gordhan and his justice and international relations
and co-operation counterparts, Jeff Radebe and Maite Nkoana-Mashabane
respectively, would have to joined in the matter.
Fattouch's lawyer Pumzo Mbana could not be reached for comment.
Last month, The Sunday Independent reported that Khumalo's palatial
Zimbali mansion escaped its second scheduled auction after he entered
into yet another settlement agreement with RMB Private Bank.
Khumalo owes the bank millions |of rands after it won a case against
him for the payment of more than R16.6m including 10 percent annual
interest in 2012.
He had also managed to save the property from being sold off in
October last year.
TOP businessman Mzi Khumalo has been ordered to pay over R53 million
to his Lebanese associate over the sale of shares and a mining deal
that went wrong in Armenia.
http://africa.tmcnet.com/news/2014/05/25/7847164.htm
From: A. Papazian
The Sunday Independent (South Africa)
May 25, 2014
by LOYISO SIDIMBA
TOP businessman Mzi Khumalo has been ordered to pay more than |R53
million to his Lebanese associate over the sale of shares and a mining
deal that went wrong in Armenia.
Lebanese businessman Pierre Fattouch won a bid in the South Gauteng
High Court to have a Parisian arbitration award recognised and enforced
in South Africa.
Court papers filed by Fattouch say he and Khumalo reached an agreement
in March 2009 for Khumalo to pay US$5m in four instalments of US$1.25m.
Khumalo's bill is likely to top R77m as he has also been ordered to
pay |9 percent in annual interest from April 2009 until the date of
final payment.
He must pay Fattouch's legal costs, according to the ruling, delivered
by Judge Sherise Weiner on May 6.
Fattouch approached the high court in South Africa in 2012 after
Khumalo failed to pay him in accordance with the award. Khumalo had
between April and September 2009 to pay Fattouch.
The battle between the two millionaires dates back to May 2006 when
Fattouch and Khumalo, through Rosario International Investments,
entered into a written sale of shares agreement. Two years later,
there was a dispute and the matter was referred to arbitration.
After winning the French arbitration, Fattouch applied to the South
Gauteng High Court to have the award made an order of the court.
Khumalo, one of South Africa's richest businessmen and a former
Umkhonto we Sizwe operative, then insisted that Fattouch put up
security for costs with the high court's registrar and the Lebanese
tycoon complied.
In court Khumalo claimed he had a pactum de non petendo (agreement not
to sue) with Fattouch who had undertaken not to proceed with litigation
until he, Fattouch, had obtained two mining licences in Armenia.
Khumalo said it did not make sense for him to pay the amount Fattouch
claimed if Fattouch was unable to obtain the licences.
Fattouch is president of the Armenia-Lebanon Friendship Association
and owns Armenia's Karabakh Telecom, which trades as VivaCell,
through the Fattouch Investment Group.
VivaCell is one of two mobile operators in Armenia and has been
operating there since July 2005.
Khumalo had also undertaken to pay Fattouch in terms of the arbitral
award, according to court papers.
Weiner said in her judgment: "There is no mention of any agreement
that the applicant (Fattouch) would not proceed pending the obtaining
of the licences in Armenia".
Khumalo also argued that Fattouch needed Finance Minister Pravin
Gordhan's permission to enforce foreign arbitration awards in terms
of the Protection of Businesses Act.
Weiner said the requirement to seek Gordhan's permission needed to be
analysed to ascertain whether it was in conflict with the constitution.
She said she would be able to decide on the facts before her and
that to adjudicate on the constitutionality of the Protection of
Businesses Act Gordhan and his justice and international relations
and co-operation counterparts, Jeff Radebe and Maite Nkoana-Mashabane
respectively, would have to joined in the matter.
Fattouch's lawyer Pumzo Mbana could not be reached for comment.
Last month, The Sunday Independent reported that Khumalo's palatial
Zimbali mansion escaped its second scheduled auction after he entered
into yet another settlement agreement with RMB Private Bank.
Khumalo owes the bank millions |of rands after it won a case against
him for the payment of more than R16.6m including 10 percent annual
interest in 2012.
He had also managed to save the property from being sold off in
October last year.
TOP businessman Mzi Khumalo has been ordered to pay over R53 million
to his Lebanese associate over the sale of shares and a mining deal
that went wrong in Armenia.
http://africa.tmcnet.com/news/2014/05/25/7847164.htm
From: A. Papazian