Khumalo threatens to fight R1bn asset forfeit

2011-08-31 19:00

Loyiso Sidimba

Johannesburg - Top businessman Mzi Khumalo has threatened to return to court to stop the SA Reserve Bank from forcing him to forfeit to government R1bn in assets for flouting exchange control laws.

In a brief statement to City Press, Khumalo said the Reserve Bank had acted outside of its mandate, scope and authority in the matter.

He said he was consulting his legal representatives and considering all aspects of his legal rights.

Khumalo said this might include returning to the courts to challenge what he described as the “Reserve Bank’s arbitrary and unconstitutional conduct”.

City Press reported on Sunday that an order of forfeiture authorising the move against Khumalo was signed by Reserve Bank deputy governor Lesetja Kganyago on August 2.

Among the assets Khumalo will lose to government include interests in 15 companies, investments held by Deutsche Bank, his shares in PSL team Lamontville Golden Arrows and his R50m Raytheon 390 Premier 1 private jet.

In 2008, Khumalo challenged the Reserve Bank’s order at the North Gauteng High Court, where he won, but the country’s central bank successfully appealed to the Supreme Court of Appeal last year.

The Reserve Bank refused to comment on the matter.

- City Press