An IOL report outlines how the ruling follows allegations that Mphephu‑Ramabulana and his family benefited from luxury gifts and property purchases funded through Vele Investments between 2015 and 2017.
These included a Range Rover, BMW 750Li, two Mercedes‑Benz V250s, and a Dainfern property worth R7.2 million. Liquidators argued that these assets were acquired using proceeds of fraud and theft linked to the VBS scandal.
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In their defence, the former king and his co‑respondents maintained that the transfers were customary gifts, known in Venda tradition as uluvha.
They described uluvha as a legitimate cultural practice, a mark of respect bestowed upon traditional leaders, and insisted that such gifts should not be equated with unlawful enrichment.
Their legal team argued that the matter lay at the intersection of insolvency law and African customary law, stressing that South Africa’s Constitution recognises plural legal traditions and demands respect for cultural diversity.
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Despite these arguments, Acting Judge Johann Gautschi ruled that the payments constituted dispositions without value under the Insolvency Act and must be set aside.
He ordered Mphephu‑Ramabulana to repay R4.39 million, while the Dzata Trust was directed to pay R8.12 million, including amounts used to settle its bond account.
Thovhakale was ordered to repay nearly R3 million, and together with the ex‑king, an additional R1.78 million. All amounts are subject to interest from the date of judgment until final payment.