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DISTRIBUTION OF NDLOVU’S ESTATE STOPPED

04/10/2020 06:48:00 BY MBONGENI NDLELA

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MBABANE – About turn!

Phumzile Thomo, the Master of the High Court, has stopped the final Liquidation and Distribution of the assets of the late businessman, Calvin Ndlovu.

This comes a few weeks after she had approved the distribution of the estate. The letter of approval is dated September 23, 2020.

However, the Times SUNDAY has gathered that on Friday, Thomo forwarded another letter in which she instructed the executor, Lawyer Knox Mshumayeli Nxumalo, to halt the distribution of the account.

“You are requested to immediately halt distribution of this estate as previously directed by this office in our letter that is dated September 23, 2020. You are requested to see the undersigned for further clarity,” she stated.

Asked about the letter, Nxumalo said he would correspond with the master’s office.

The Times has also gathered that the Ndlovu family intend to file an application at the High Court to, once again, object to the intended distribution of assets. The family is seeking redress in that the office of the Master of the High Court has failed to respond or to address about eight objections regarding the assets. Lawyer Mangaliso Magagula on Friday confirmed that his client would be approaching the courts.

Speaking to the Times this week, Hlobsile Ndlovu’s family said for years, they had been engaging lawyers to help enforce justice but their attempts hit a snag, causing them pain.

At least five local lawyers, including a senior human rights attorney, have received a share from the estate in respect of payments for litigations, while the family has not received a cent. In one instance, a human rights lawyer was paid E120 000 by the family, in an attempt to fight for their concerns but statements show that this lawyer later received cash from the estate without the knowledge of most members of the family.

The only thing they recalled happened was that in 2015, Apton and Absalom were each paid a sum of E100 000 from the estate. Again, the payment was done without the involvement of the master’s office and without consultation from the other beneficiaries. This is despite the fact that the Estate Administration Act, states that letters should be written to all the beneficiaries each time there are payments from an estate account.

However, the family alleges that they got to know about these payments after seeing cheques from the two. These payments were done in 2015.

Another bone of contention is the transfer of funds from the estate’s account into a trust account under Robinson Bertram lawfirm. They alleged they were not consulted over this decision.

The late Ndlovu died on February 17, 2001, aged 68 and had 16 children, who include Hlobisile, who is now a Liqoqo member, former Mayiwane MP Apton, Pigg’s Peak businessman and councillor Absalom. At the time of his death, his wife was 54 years old and now she is 73.

The family members, especially those born from Hlobisile’s mother, Siphiwe, believe the office of the Master of the High Court has done nothing to exercise fair justice in the liquidation and distribution of Ndlovu’s assets, which is now estimated to be worth E31 million. What has frustrated them is that they believe they are entitled to about E15 million in cash, by their own count, not the advertised E6 million.

According to a letter of approval from the master’s office, available cash is E6 077 918.67.

It had also dawned on them that the E6 million might decrease to E1.8 million after deduction of liabilities.

Liabilities, in this case, will be administration fees and legal costs that have accrued during the 19 years of waiting. Information sourced from the distribution account reflects that liabilities total E4.6 million.

The will states that what is left out from the estate goes to the wife. The ‘leftovers’ are regarded as a residue.

According to www.linlawsgroup.com, in the administration of a will or trust, after a person dies, certain things are paid out or distributed - usually in a certain order. These liabilities include the expenses of administering the estate (such as attorneys and CPA fees), obligations which must be paid (such as taxes and creditor claims), and specific devices (gifts) designated in the will or trust to go to a beneficiary. After all of these are paid or distributed, what is left is referred to as the residue. The provision in the will or trust, which designates what happens to the residue, is sometimes referred to as the residuary provision or residuary clause.”

MONITORED

Meanwhile, the Administration of Estates Act of 1902, states that monies belonging to an estate should be kept in a guardians fund. The fund should be monitored by the office of the Master of the High Court for disbursements to beneficiaries of the deceased’s assets. However, sometimes beneficiaries and the office of the Master of the High Court would choose to ignore this statute by allowing the opening of a trust account on claims that the latter has quicker processes during a claimant.

They are uncertain when it will be finalised.

What has further caused them hurt is that their accounting books or records are telling a contrary story to what the executor claiming was available in the bank. According to the family, about E15 million cash should be available to this period, not anything less.

Speaking on behalf of the family, Sikhatsi Dlamini said the Administration of Estates Act of 1902 states that the executor should wind up an estate within six months of the date of his/her appointment.

He said the Act clearly states that in case the executor is failing to wind up the estate, he/she should explain in writing to the Master of the High the reasons why the estate cannot be wound up. The executor has cited litigation between the parties as contributing to the delay.

Admitted

Seasoned lawyer Zweli Jele on Thursday distanced Robison Bertram law firm from the issue of the estate. He said Nxumalo was no longer part of the firm as he left to open his own offices. Jele, however, admitted that the law firm was in charge of the estate until on the day Knox left the firm.

Asked what happened to the trust account in which the estate rentals are deposited after Nxumalo left the firm, Jele explained that Nxumalo had opened a separate trust account under the law firm. He said the estate monies were not part of Robison Bertram accounts.

“The law firm was involved until Nxumalo left to open his office,” Jele said.

Meanwhile, a section of the last will states that in the event Nxumalo leaves, the lawfirm would be responsible for the estate. In fact, corresponding letters between the executor and the office of the Master of High Court are still bearing Robison Bertram letter heads. The will identifies Nxumalo and the lawfirm as being in charge of the estate.