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Ngema owes R1.5m

2002-12-14 13:16
line

Pietermaritzburg - Playwright Mbongeni Ngema owes his creditors almost R1.5m and he appears to have no means to pay the debt.

Ngema's financial state of affairs emerged on Friday after a Section 152 hearing under the Insolvency Act at the city office of the Master of the High Court.

A subdued Ngema made a brief appearance before the hearing that was held behind closed doors, and left quickly afterwards.

Documentation was lodged to show how Ngema's assets were obtained and how the proceeds were distributed among creditors. According to the liquidation and distribution account, the proceeds of Ngema's assets included an amount of R200 000 for intellectual property and at this stage only the South African Revenue Service received its full due, an amount of R119 183.

The only other creditors receiving any money at this stage are First National Bank and its financing division, Wesbank. FNB was paid R189 941 against a R399 888 claim, while Wesbank received R33 866 of R100 407.

Other creditors

Other creditors include Business Partners (R817 866), FirstRand Bank (R238 072), Absa Bank (R72 645), Nedbank (R46 030), World Travel (R197 433) and Hampden Road Investments (R59 503).

Trustee Peet Schoerie of Schoerie, Hayes and MacPherson said an application to have the Ngema matter heard under sections 64 and 65 of the act was approved.

"These provisions allow creditors to participate in the proceedings, and for creditors not yet listed to prove their claims," he said.

It is understood that at least three other creditors have indicated they will be submitting claims and that creditors wish to question Mbongeni on a number of issues, including his relationship with two trusts - African Production Trading Trust and African Production Family Trust.

It is understood Ngema is employed by the African Production Trading Trust and has allegedly been earning a salary.

A provisional order was first passed declaring Ngema insolvent on March 16, 1999. The matter will be heard again in March next year.

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