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.
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.
“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.”