Dispute Over Ownership of R800 Million Chrome Extraction Firm Swirls in South Gauteng High Court

A high-stakes legal battle over a chrome extraction company valued at R800-million is unfolding in Johannesburg's South Gauteng High Court. Last week, a legal representative of the deceased business mogul, Sandi Majali's wife and son lodged an application to review an arbitrator’s decision that delivered ownership of this significant asset to Majali’s former business associate, Lindani Mthwa.

Majali's son, Philip, and his wife, Alice, are contesting that the previously owned company by Majali, Imvume Resources, is the solitary member, shareholder of Siyanda Chrome Investment (SCI) and is therefore entitled to appoint SCI’s directors and receive dividend payments. They are fundamentally urging for the arbitration award to be invalidated or revised. Their reasoning is grounded on their assertion that the arbitrator didn't fully consider Majali's side during arbitration.

The tussle for command of Siyanda harks back to 2009, as both Majali and Mthwa declared hold of all the shares in the Northern Cape chrome extraction company. The dispute was settled by an arbitration agreement favouring Mthwa.

After Majali's unsuccessful pursuit for funding, Mthwa collaborated with Anglo Platinum which funded the project in return for shares. An arbitration in October 2010 ruled against Majali and Imvume's claim of sole ownership of Siyanda and their entitlement to company dividends repayment.

Said ruling was opposed by Majali before his unexpected demise in December 2010. Majali, pivotal in the oilgate saga, faced fraud allegations related to the purported "hijack" of mining firm Kalahari Resources during his lifetime.

Dennis Bishop, an employee at Gobodo Chartered Accountants, in an affidavit supported Majali’s claim, providing proof of Majali instructing Gobodo to acquire a shelf company to shelter Siyanda and to transfer shares to Imvume, leading to an Imvume share certificate issuance. Majali's lawyer, John Ngcebetsha, is contesting the arbitration ruling, arguing that no evidence was led by Majali or Imvume to inform the arbitral decision.

As the inquest into Majali's sudden death in 2010 still awaits finalisation, the South Gauteng High Court deciphers another tangled legal battle bearing his name, leaving an R800-million chrome extraction company in the balance.