Shauwn “MaMkhize” Mkhize wants the Durban High Court to dismiss SARS in its attempt to sell her properties.
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Durban’s controversial businesswoman, Shauwn ‘MaMkhize’ Mkhize, is fighting tooth and nail to prevent the South African Revenue Service (SARS) from selling her properties.
This urgent application from SARS is pending the hearing regarding Mkhize’s alleged failure to pay approximately R40 million in taxes.
On Wednesday morning, Mkhize’s legal team argued in the Durban High Court that SARS’s urgent application to sell the properties should be struck off the roll due to a lack of urgency.
SARS approached the High Court seeking an order to sell the properties, citing concerns that the assets are deteriorating and losing value.
The revenue service noted that some properties under their appointed curatorship are not well-maintained and are accumulating unpaid levies. The specific location of the properties was not disclosed in court.
Advocate Sinethemba Ndlovu, representing Mkhize and her son Andile Mpisane, accused SARS of failing to adhere to the rules governing urgent applications, specifically by not seeking an earlier date from the Judge President.
Ndlovu pointed out that the urgent matter was only heard three months after the papers were initially filed. Furthermore, she argued that the application should have been brought immediately after the preservation order was granted by the same court in November 2024 to attach Mkhize’s assets.
“The application ought to have been brought in a normal court. It’s been one year and three months if my memory serves me correctly,” Ndlovu said, firmly stating the lack of urgency.
Mkhize’s counsel also claimed that the properties SARS sought to sell were the primary residences of her clients.
However, Judge Jacqueline Henriques questioned this claim, asking why it was not explicitly stated in the affidavits.
She noted that four affidavits had been filed, yet none confirmed the properties in question were primary residences, especially since other properties had been listed as such.
Advocate Hein Synman SC, representing SARS, objected when Mkhize’s counsel attempted to make submissions from the bar to reply to the judge. He argued that a strong case for the sale had been presented to the court.
Synman argued that converting the properties into cash was mutually beneficial for both Mkhize and SARS. He explained that since Mkhize’s bank accounts are frozen, she cannot maintain the properties, and SARS cannot use taxpayers’ money for maintenance.
“Every day we stand here, the properties are worth less; they don’t pay rates and levies,” he said.
Synman explained that the proceeds from the sale would be held under SARS curatorship until the finalisation of the initial tax matter. Should Mkhize win the case, she would receive her money back.
Judge Henriques also posed a hypothetical question: “What would happen if she says she wants her property and not the money?”
In response, Synman said Mkhize had not formally told the court she objected to any property being sold, for instance, due to sentimental value, like belonging to her mother.
Advocate Coreth Naudé SC, who was shot in 2024 during the tax inquiry of Andile Mpisane, was also in court assisting Synman.
Judge Henriques reserved her judgment on the matter.
nomonde.zondi@inl.co.za