Andile Ramaphosa Sinking In Debt, Set To Lose Luxury Car And House
After failing to keep up with monthly payments, Andile Ramaphosa, the president’s eldest child, is losing his luxury car and being evicted from his opulent home in Joburg.
Standard Bank dragged the young Ramaphosa before the Joburg High Court last week after he failed to pay instalments for the BMW 650i. Ramaphosa’s Edenburg property, which he used as a surety for an R1.8-million loan he secured roughly seven years ago, is also being attached and auctioned off by the lender.
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Standard Bank’s Dudzai Mungani stated in court papers that Ramaphosa and the bank had entered into a medium-term credit agreement in which the bank lent him R1.8 million. Ramaphosa agreed to return the loan in R15 000 monthly instalments over a 120-month period (10 years). He used his high-end home as collateral for the loan, agreeing to let the bank sell it if he didn’t pay it back in full.
Mungani claimed that the president’s son had broken the agreement by failing to pay his monthly instalments, and that as a result of his slowness, the bank had dissolved the loan arrangement and asked that he pay the outstanding debt in full.
“In breach of the medium-term loan agreement, the respondent failed to make payment of the instalments due and as of 12 October 2021, the respondent was accordingly indebted to the applicant in the amount of R1 491 452.98,” read the papers.
The bank is praying for an order to attach and auction the property off in a bid to recoup its money. “The respondent may prevent the property declared from being executable by settling all outstanding amounts owed to the applicant,” read the papers.
The bank’s lawyers had canceled the VAF arrangement on February 10 of last year, according to the paperwork, and asked that he surrender the vehicle. On August 1, 2017, Ramaphosa and the bank signed a settlement agreement in which he agreed to pay R23 000 before August 15, R18 000 twice between September and October last year, and R17 000 before November 1.
However, he allegedly broke the settlement agreement by failing to make the required payments, leaving the bank with little alternative but to seek the court to compel the vehicle to be repossessed.
“The applicant seeks an order for the repossession of the vehicle. “As set out above, the vehicle remains the property of the applicant until the respondent has paid all amounts due in terms of the VAF agreement,” read the papers.
