PRINCESS LUNGILE, SHAKANTU IN E20M ESWATINI MOBILE SHARES DISPUTE

MBABANE – Princess Lungile has run to court over the sale of Eswatini Mobile shares, which were previously held by her husband, the late Victor Gamedze.

In papers she filed at the High Court, the princess alleged that her late husband’s shares were transferred to businessman Michelo Shakantu, without her knowledge or consent.  Princess Lungile ran to court after she learnt that the shares are now allegedly being sold by Shakantu to the Public Service Pensions Fund (PSPF). Among other business interests, Gamedze held shares at Eswatini Mobile through his company, Stage 1 Connections (Pty) Ltd. The deceased businessman, according to the court papers filed by Princess Lungile through her Attorney Ben J. Simelane, was a sole shareholder of Stage 1 Connections (Pty) Ltd. Gamedze held 1 000 shares. The shares, according to the applicant, stand at over E20 million, as of June 30, 2024.

Transferred

These shares, according to Princess Lungile, were on May 28, 2019, allegedly transferred by the executor of her husband’s estate, Derrick Jele, to Cherrybite (Pty) Ltd, which was allegedly represented by Shakantu. She contended that the shares were disposed of from her husband’s estate without her knowledge or consent. Princess Lungile stated that the transfer was reportedly carried out without a purchase price and without obtaining the necessary approvals. “I am further advised that the absence of a purchase price in the agreement renders the purported sale null and void ab initio. Further, all indications are that no evaluation of the shares was made prior to their purported disposal or transfer.“This is consistent with the notion that the shares were literally given away, and I submit that the executor had no right to give the estate assets away. They were supposed to be sold for value,” submitted Princess Lungile.

Executor

The princess further submitted that she was advised that the shares, being an asset in Gamedze’s estate, the executor was enjoined to seek and obtain the consent of the beneficiaries and obtain prior consent from the master of the High Court. Princess Lungile purported that there was no evidence that either of the two was done and, on that basis alone, the sale of the shares was invalid. The veracity of these allegations is still to be tested in court. The respondents are yet to file their answering papers. Princess Lungile went on to inform the court that she wants the transfer of the shares to be declared null and void. Alternatively, she pointed out that the  decision is voidable and stands to be set aside.

“In the past few months, I gathered strength and intend to follow up on the deceased’s shares in Cherrybite (Pty) Ltd. In this, I was motivated by knowledge that the deceased was a founding member of Eswatini Mobile Limited and it bothered me that nothing was coming into the estate from this corporate source, as well as others. Princess Lungile claimed that a few months ago, she fortuitously got to know that the PSPF was to increase its shareholding in the company, Eswatini Mobile Limited.” Currently, she submitted, PSPF is one of the major shareholders in the entity. She stated that this knowledge galvanised her into pursuing the issue of Gamedze’s shareholding in Stage 1 Connections (Pty) Ltd, which was his investment vehicle in Eswatini Mobile Limited. Princess Lungile alleged that in mid-August 2024, she caused a search to be conducted at the registry of companies, to establish the status of Gamedze’s shares in Stage 1 Connections (Pty) Ltd.

Shares

“The report I got was that the shares had been disposed of by the executor and transferred to Cherrybite (Pty) Ltd. This came as a shock to me,” she submitted. On August 20, 2024, Princess Lungile submitted that she wrote a letter to the executor and enquired about the said shares. She claimed to have also sent a copy of the letter to Shakantu at Eswatini Mobile Limited, on the same date. Princess Lungile alleged that on the same date, Shakantu wrote to the executor on the same subject matter. An excerpt of the letter supposedly written by Shakantu reads: “We understand you are the executor of the deceased estate and we request your clarification on how the shares correctly held by Cherrybite in Stage 1 Connections were transferred from the name of the deceased to Cherrybite (Pty) Ltd.”

The letter by Shakantu is said to be in Eswatini Mobile Limited letterheads. Princess Lungile said the most suspicious part of the letter, purportedly written by Shakantu, was that it came through as if the author was someone who did not know how Cherrybite (Pty) Ltd received the shares from Stage 1 Connections (Pty) Ltd. A few days later, on August 26, 2024, the executor responded to Shakantu’s letter of August 20, 2024. The contents of the response suggest that, not only did Shakantu know of the process that transferred the shares, but he allegedly participated fully in the process and signed the documents.

“Why Shakantu would pretend not to know an important transaction such as this in a matter that is mind-boggling? In my view, what this does show is that those who made the deal know that something is not right about it,” alleged Princess Lungile. She wants the court to order that the sale and transfer of 1 000 shares between the executor (as seller) and Cherrybite (Pty) Ltd (as buyer duly represented by Shakantu) be declared null and void. The princess is also seeking an order that the transfer of the shares by the executor to Cherrybite (Pty) Ltd dated May 28, 2019 pursuant to the sale, be declared null and void.

Authorised

She is further seeking an order that the registrar of companies be directed and authorised to forthwith re-register the 1 000 shares in the name of Gamedze’s estate and that Stage 1 Connections (Pty) Ltd reverts to the control of the executor forthwith. Princess Lungile expressed fear that the acquisition of the shares could cause irreparable harm to her and other beneficiaries of the estate.  The other beneficiaries of the estate listed by the princess are: Temalungelo Gamedze, Tiyandza Gamedze, Nosipho Gamedze, Tengetile Gamedze and Chantel Littler, as the guardian of Wandile Gamedze. The princess is desirous to prevent the sale of the shares or, alternatively, to have the proceeds held in a court-designated account until the matter is resolved. The matter is pending in court.

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