Luxury diamond ring maker goes bust

accreditation
Somizi Mhlongo and Mohale Motaung. Photo: Gallo Images
Somizi Mhlongo and Mohale Motaung. Photo: Gallo Images

NEWS


Nungu Diamonds, the company that designed the two-carat wedding rings for estranged celebrity couple Somizi Mhlongo and Mohale Motaung, is facing possible liquidation following a breach of the credit agreement it had with financers Anglo American Zimele, to the tune of R1.6 million. This is after numerous calls for repayment allegedly fell on deaf ears.

Subsequently, the funders of the luxury brand have called its owner, Kealeboga Pule, to appear at the Johannesburg High Court for adjudication.

In its provisional sentence summons instituted at the same court on September 14, Anglo American Zimele said that an acknowledgment of debt had been signed by Pule in January, before legal action was taken.

“The first defendant undertook to make payment in monthly instalments to the plaintiff in the sum of R135 500 before the seventh day of each month.

“In the event of the first defendant failing to make one payment, the full amount outstanding would become due and payable to the plaintiff,” read the court papers.

READ: Fans slam Idols SA judges for favouritism

The claim shows that the last payment for the agreement from Nungu Diamonds was made in April.

Nungu Diamonds is one of five companies that were selected to be part of a De Beers diamond beneficiation project which was launched in 2016. This gave the company not only credibility, but also the opportunity to work with the best diamonds in the world, from a reliable and credible source, and which are responsibly mined.

Pule confirmed that he was aware of the legal action and said he aimed to settle the dispute out of court.

Pule said: 

I have had a productive relationship with Anglo American Zimele

“This funding was extended to Nungu Diamonds as part of a programme aimed at promoting diamond beneficiation in South Africa, adding value to our locally mined minerals to create jobs and develop sustainable businesses,” he said

However, he disputed the figure cited on the claim.

“The initial loan amount was R3 million, and Nungu Diamonds has successfully paid back an amount of R2 471 991 to date. R475 000 was paid during the course of this week ... The R1.3 million stated in the summons I received is incorrect, and is a reflection of premature action on the part of the lawyers representing Anglo American Zimele, which I am certain is a matter we can discuss and put to bed without wasting our courts’ time.”


We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
2022 Fifa Qatar World Cup
DAYS
HRS
MINS
MORE WORLD CUP NEWS
Latest issue
Latest issue
All the news from City Press in PDF form.
Read now
Voting Booth
As we are commemorating the 16 Days of Activism for No Violence against Women and Children, which started on November 25, crime against women continues to be worryingly high with over 13 000 women assaulted between July and September 2022, while over 10 000 rape cases were opened in the same period. Is government doing enough to curb GBV?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, it’s trying
7% - 3 votes
No, it's failing women and children
76% - 34 votes
I'm too discouraged to care
18% - 8 votes
Vote