AFRICAN ALLIANCE DEMANDS E17 MILLION FROM MATATA GROUP

MBABANE – Matata Group (Pty) Limited, which reportedly lost up to E25 million due to the unprecedented El Nino drought, has African Alliance Swaziland Umnotfo Fund hot under their hills demanding E17.1 million.

The plaintiff (African Alliance Swaziland Umnofto Fund) represented by Nedbank Swaziland is a holder of a promissory note prepared and signed by the defendant (Matata Group) as a Promisor in a principal amount of E15 million issued on June 1, 2016. A promissory note is essentially a written promise to pay someone. This type of document is common in financial services. If you decide to lend money to someone, you may want to create a promissory note to formalise the loan. African Alliance Swaziland Umnotfo Fund is a unit portfolio in the African Alliance Swaziland Collective Investment Scheme. The plaintiff has since instituted legal proceedings against Matata Group where it is demanding payment of the E17.1 million. In its particulars of claim in the promissory note between the parties, it was agreed that the interest rate applicable was 14 per cent per annum. It was alleged it was further agreed that the repayment date was to be June 1, 2017and the maturity valued was E17.1 million.

“In terms of the said promissory note, the defendant promised to pay to the plaintiff on demand the sum of E17.1 million at the plaintiff’s place of business at Nedbank Centre, Mbabane on June 1, 2017,” reads part of the particulars of claim filed by the plaintiff’s lawyers from Henwood Company last Friday. Matata Group Limited is alleged to have failed to pay the maturity of the promissory note on the maturity date. These are allegations contained in particulars of claims whose veracity is still to be tested in court and Matata Group is yet to file its papers in the event it was opposing the matter.  According to African Alliance Swaziland Umnotfo Fund, on June 13, 2017 it issued a demand for payment of the maturity value plus costs but the defendant had failed to make payment. The plaintiff stated that notice of dishonour was dispensed with in terms of Section 93 of Exchange Act No.11 of 1902. “In the premise, the plaintiff is entitled to judgment against the defendant for the payment of the sum of E17.1 million, plus interest thereon at the prime rate of interest plus five per cent from June 1, 2017 to date of final payment,” submitted the plaintiff.

African Alliance Swaziland Umnotfo Fund claimed that the prime rate of interest was 10.75 per cent per annum. “Despite demand for such payment, the defendant fails, neglects and/or refuses to pay the plaintiff the amount of E17.1 million plus interest,” alleged the plaintiff.African Alliance Swaziland Umnotfo Fund is now praying for judgment against Matata Group in the following terms:  payment of E17.1 million, interest of the sum of E17.1 million at the rate of E15.75 per cent calculated from June 2, 2017 to date of final payment and the costs of suit. It should be mentioned that most recently, Matata Group of Companies Chief Executive Officer (CEO) Hans Steffen confirmed that the Nkonyeni Spar at Sidvokodvo, with an investment value of E12 million, had been sold.  He said the transaction had been finalised about two weeks. He said the stock, furniture and fittings had been sold to Lowveld Spar - South Africa, who in turn clinched a deal with another private operator who is currently running the globally renowned franchise.

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