Ousted VhaVenda King Toni Mphephu-Ramabulana, his wife, nephew, and their family trust must pay the liquidators of Vele Investments, VBS Mutual Bank’s majority shareholders, nearly R17.3 million they received to buy a posh Dairnfern, Johannesburg, property and several luxury cars, among others. Dethroned VhaVenda kingToni Mphephu-Ramabulana, his wife Hulisani, and nephew lawyer Oscar Thovhakale, and their Dzata Trust must pay liquidators of VBS Mutual Bank majority shareholder Vele Investments, about R17.3 million in alleged cultural gifts. Vele joint liquidators Richard Pollock, Abdool Omar, Jabulani Sithole, Mikateko Shirilene, and Michelle Schutte approached the Gauteng High Court, Johannesburg, claiming the funds paid to the king, his wife, and nephew, which were channelled to buying a posh Dainfern property in which the former royal couple lives.
In addition, thedeposed kingalso received a 2015 Range Rover, a 2016 BMW 750Li, and two Mercedes-Benz V250 cars, which, together with the property, were gifts he received between 2015 and 2017. However, the liquidators allege that Mphephu-Ramabulana was a recipient, through Vele Investments, of proceeds of the fraud and theft that was perpetrated on VBS, together with his nephew and the Dzata Trust, which was provisionally sequestrated in July 2023. Mphephu-Ramabulana and Hulisani were trustees of the Dzata Trust, which was operated for their benefit and owns the Dainfern property, which was bought for R7.2m through two payments of R3.6m in May 2018.
In their defence, the couple told the court that the gifts from Vele were part of the Venda practice ofuluvha, which is a customary gift bestowed on a traditional leader as a mark of respect and homage. “This matter lies at the intersection of two normative orders: the statutory principles of insolvency law and the living traditions of African customary law. “At its heart is a question not merely of financial transfers or legal technicalities, but of cultural meaning, constitutional recognition, and the dignity of a people,” the couple, their nephew, and trust argued in court.
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They added that the Constitution is a transformative document and recognises that South Africa is not a monocultural society governed by a single legal tradition, but a pluralistic democracy founded on values of human dignity, equality, and freedom. “The practice ofuluvha, a customary gift bestowed upon a traditional leader as a mark of respect and homage, is one such living rule of law. It reflects deep-rooted socio-political and economic relationships in African communities, where leadership is not isolated from the people but embodies the collective identity, dignity, and continuity of the community,” they argued. According to the ex-king, his wife, nephew, and trust,uluvhais neither a bribe nor an unlawful enrichment; it is a reciprocal act embedded in centuries of African jurisprudence.
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