EXECUTOR CANCELS VICTOR’S SHARES TRANSFER AGREEMENT

MBABANE – In a new twist to the battle surrounding the late Victor Gamedze’s shares in Eswatini Mobile, the executor of his estate, Derrick Jele, has formally cancelled the transfer of shares agreement with Cherrybite (Pty) Ltd, effective January 9, 2025.  Jele cites Cherrybite’s failure to fulfil material terms of the agreement, specifically the takeover of Gamedze’s debts and suretyships at EswatiniBank, as the primary reason for the cancellation.

This development means that the Public Service Pensions Fund (PSPF) now has to deal with Jele in respect of the purchase of the shares as the cancellation means the same has, by operation of the law, reverted to the estate. The executor has notified both the PSPF and the registrar of companies of this change in shareholding. This latest development follows a recent court ruling where Princess Lungile’s application to invalidate the share transfer was dismissed.

Lacked

Judge Zonke Magagula ruled that the princess lacked the legal standing to challenge the transfer without first setting it aside. The judge’s decision hinged on the principle that until the initial transfer to Cherrybite is legally overturned, the princess cannot interfere with subsequent transactions. The genesis of the matter lies in the transfer of Gamedze’s shares in Stage 1 Connections (Pty) Ltd, the holding company for his Eswatini Mobile shares, to Cherrybite in May 2019.

Princess Lungile, Gamedze’s wife, contested the transfer, alleging it was done without her knowledge or consent and without proper consideration.  She claimed the shares, valued at over E20 million, were transferred without a purchase price and without necessary approvals. She also raised concerns about a purported agreement where Cherrybite, represented by businessman Michelo Shakantu, would assume the indebtedness of Gamedze’s estate to EswatiniBank, where he (Gamedze) or his estate owed E120 million.

During court proceedings, conflicting accounts emerged regarding the nature of the agreement and the consideration involved. Shakantu’s legal representative, Advocate Thakane Mofokeng, argued that Cherrybite’s concern was limited to the E9.8 million Eswatini Mobile-related debt, not the entirety of Gamedze’s liabilities.  Mofokeng further asserted that the E9.8 million figure represented the consideration for the shares.  

Disputed

However, this version of events was disputed by Jele, who, in his letter of cancellation, states that the agreement encompassed all of Gamedze’s debts and suretyships at EswatiniBank.
The court also heard arguments regarding Princess Lungile’s standing to challenge the transfer.  Mofokeng argued that as a beneficiary, she lacked the legal standing to initiate a vindicatory action, which can only be brought by the executor. 

He further pointed out inconsistencies in her position, noting her apparent desire for the shares to be sold to PSPF while simultaneously contesting the initial transfer.The future of Gamedze’s Eswatini Mobile shares and the proposed sale to PSPF now rests on the validity of Jele’s cancellation and any potential legal challenges that may arise from Cherrybite or other interested parties. 

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