Law & Justice

Durban Court Approves Sale of Five MaMkhize Properties Amid Security Cost Concerns

By Nomonde Zondi

The Durban High Court has authorised the sale of five properties linked to businesswoman Shauwn “MaMkhize” Mkhize. Judge Jacqueline Henriques ruled that the estates in Sandown, Johannesburg, could be sold before a separate legal action determines whether the South African Revenue Service (SARS) is entitled to execute against them. The proceeds must be held in a trust account until the dispute over entitlement is resolved.

SARS has been paying nearly R200,000 a month for private security and insurance on the properties. Court papers show monthly security costs of R188,261.90 and a six‑month insurance fee of R97,922.30. The properties had not been insured when they were initially preserved, and outstanding municipal charges had reached R1.79 million. A valuer reported damp damage and poor maintenance. The City of Johannesburg issued a contravention notice after discovering that improvements had been built on four of the properties without approved building plans.

Henriques dismissed objections by Mkhize and her son, Andile Mpisane, who argued that the application was not urgent and that the sale would deprive them of their primary residence. She found that the properties were deteriorating and that the costs of maintaining them were undermining the purpose of the preservation order granted in November 2024. The judge noted that none of the respondents had challenged the factual allegations in SARS’s founding papers, relying instead on preliminary legal objections.

The five properties are situated side by side in Sandown and function as a single compound. Their combined market value is R35 million, while their forced‑sale value is R24.5 million. Four are registered in the name of Yaron Peretz, while the fifth belongs to 22 Aston Investment (Pty) Ltd. Henriques authorised the curator appointed to oversee the properties to proceed with the sale. SARS has one month to institute a separate action to determine entitlement to the proceeds, which must remain in a trust account in the meantime.

On a balance of probabilities, the judge found that SARS had laid sufficient groundwork to show that Mkhize was the beneficial owner of the properties. Evidence included payments by Mkhize and Zikhulise Group towards most of the purchase price. Peretz had also testified during the tax inquiry that all negotiations had been conducted through Mkhize.

Mkhize owes SARS R13.3 million in personal income tax and is also personally liable for the R112.5 million owed by Zikhulise Group, of which she is a trustee and beneficiary. SARS has already recovered R6.1 million through auctions of cars, designer bags and other movable assets seized from the properties.

Mpisane argued that the Sandown properties constituted his primary residence. Henriques pointed out that his court papers listed his address as a property in La Lucia and that he and his family had alternative accommodation there. Mkhize also had alternative accommodation available, the judge found, noting that she had at least seven other properties she could occupy.

Mkhize, Mpisane, 22 Aston Investment and 56 Adrianne Street (Pty) Ltd were ordered to pay the costs of the application jointly and severally, including the costs of two counsel on Scale C.