BUSINESSMAN ‘MJUDA’S MATTER CAUSE FOR HIT MEN ON LAWYER

MBABANE – While popular Nhlangano businessman Rudolph ‘Mjuda’ Diamond lies in a coma, there are rumblings among relatives over the management of his businesses and bank accounts.

One of the parties is Lindo Diamond, who describes herself as a 50 per cent shareholder and Director of Diamond Investments (Pty) Ltd, as well as Rudolph’s daughter. Lindo and the company obtained an order suspending forthwith any payment from a First National Bank (FNB) account pending a full and detailed account of funds deposited into it.

On the other hand, the respondents argued that payments for Rudolph’s medication were made from that account and the order was prejudicial to him. On Thursday, Senior Lawyer Nkosinathi Manzini, reported to the Law Society of Eswatini that he feared for his life after hit men were allegedly hired to kill him and his clients due this matter, which he is handling.

Trustees

He is appearing for the respondents - curator of Rudolf’s estate, Hertzal Diamond, Lucky Diamond, who is Rudolf’s son and a shareholder in the company, the Bookkeeper/Administrator and trustee in the Diamond Family Trust, Sibongiseni Xaba, Glory Hlophe and Phila and Philani Maseko, who are trustees.

On Friday, Judge John Magagula ordered that in the meantime, should there be need for urgent medical attention for Rudolph (80), prescribed by a registered medical doctor, FNB is authorised and directed to pay for such. Lindo wants the High Court to direct FNB to forthwith restore her credentials to unilaterally transact in, or operate, Diamond Investments’ account held with the bank. She also prayed for an order directing FNB to acknowledge the company’s resolution dated June 28, 2023 and effect the change of mandate on the operation of the FNB account.

Interfering

She further wants the court to interdict the respondents from interfering with the business and communicating with customers and clients. Lindo is also seeking an order interdicting the respondents from making cash requisitions from the company funds in the T-Junction filling station or harassing and intimidating employees.

She prayed that a detailed, transparent and full account of the payments or deposits into the Nhlangano branch account held with FNB. Rudolf’s businesses include leased commercial buildings, rental apartments, a school, a church among and a filling station.

In her court application, Lindo submitted that the company was allegedly hijacked by the respondents, in pending proceedings. She alleged that they were taking advantage of the incapacity of Rudolph, who was the executive director prior to falling seriously ill at the end of November 2022. He is unconscious and cannot care for himself or manage his business affairs. Hertzal was granted co-curatorship of the estate of the businessman.

Lindo told the court that she had been running the business with Rudolph until last year or ‘the year before when differences between me and Rudolph emerged after suggestions that I was not his biological daughter, contrary to my birth certificate’.

“I was not only annoyed but was in fact hurt by the suggestion and decided to take a break from company business, which Rudolph Diamond continued to run until he fell seriously ill at the end of November 2022. “Notwithstanding my voluntary stepping aside from the management of the company, I retained my equal shareholding of the company with Rudolph Diamond. I also maintained my directorship in the company,” she argued.

Lindo is represented by Sabela Dlamini of Magagula and Hlophe Attorneys. She said prior to an interim order in her and the company’s favour, the respondents were happy to let some of the company tenants deposit rentals into a disputed company account held with FNB.

Controlled

Lindo alleged that this was because the respondents unilaterally controlled the bank account. The interim order was issued on August 1, 2023 and it, among other things, interdicted Hertzal, Xaba and Glory Hlophe from dealing with and participating in the management or executive businesses of Diamond Investments. It also interdicted them from logging into the internet banking profile to access funds of the company for whatever purpose.

Lindo alleged that after becoming aware of the interim order, the respondents redirected company tenants to make payments of rentals to the Diamond Family Trust account, which she purported was established in order to evade the applicants’ challenge of the unlawful power they (or their agents who report directly to them) exercised over the company.

“The unlawful instruction to the company tenants and customers was made or given on or about mid-August 2023. Some of the instructions to the company tenants to switch payments from the formal company bank accounts have been made in writing by the second and third (Hertzal and Lucky) respondents. “I submit that, on the part of the third respondent as company director, this constitutes carrying on the business of the company recklessly or with an intent to defraud creditors or for a fraudulent purpose within the meaning of Section 199 (1)(c) read with Section 199(1)(e)(ii) of the Companies Act,” she told the court.

According to Lindo, the company tenants and customers had commenced making payments to the Diamond Family Trust bank account number 63065183659 held with FNB in payment of goods and services supplied or rendered by the company.“This is patently unlawful and respondents must be compelled by this honourable court to withdraw such instruments.

The company funds being misappropriated run into hundreds of thousands of Emalangeni which the respondents inevitably help themselves to at whim. “Accordingly, the interests of justice demand that payments made from the said Trust bank account be stopped forthwith pending a full and detailed account of the company funds paid into the Trust bank account,” Lindo averred.

She informed the court that the company had a clear right to the funds which arise from its business in which she has a vested interest as a shareholder/director. Lindo accused the Diamond Family Trust and respondents of collectively initiating or pursuing the alleged misappropriation from Diamond Investments. She alleged that they acted in common purpose to steal from the company. The matter is pending in court.

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