Chantelle Benjamin
17 November 2008
Johannesburg — THE palatial R100m Sandhurst home of late Rwandan mogul Miko Rwayitare, which was sold initially for R400000 to its architect, is up for sale again to pay off a R65m bond.
Rwayitare's widow, Conso, and his former architect, Greg Pietersen, have been embroiled in a heated legal battle over ownership of shares of a company called Propro Investments, which has the mansion among its assets.
While the two were still slugging it out in court, Investec Private Bank won the right last month to foreclose on the outstanding bond and will be auctioning the house at the end of the month.
Investec's legal representative Tony Sanchez said on Friday the bank tried negotiating with Rwayitare's widow, Pietersen and executors of Miko Rwayitare's will, but after getting no joy decided to put an end to the mounting debt.
"The bank made it clear that it did not care who serviced the bond but that the amount needed to be paid, and when no money was forthcoming the bank won the right to foreclose on September 4," said Sanchez.
Rwayitare, who died in Brussels at the age of 65 after complications during intestinal surgery, was known as the father of telecoms in Africa, credited with introducing the cellphone to the continent. He sold his Telecel International to Egypt's Orascom Telecom for $413m.
The house was built in 2001 with Pietersen's MV3 firm of architects as the principal agents supervising the project.
Shortly before Rwayitare died last year, the house was auctioned by the sheriff of Sandton to pay off a debt to Pietersen, allegedly owed R507000 for the Sandhurst mansion and about R5m for a project he undertook in Rwanda, which involved rebuilding a hotel and the construction of 16 houses.
Pietersen's company Pirus Projects bought the shares in Propro Investments for R400000, and after Rwayitare's death executors of his will took Pietersen to court, questioning the legality of the sale.
Pietersen and Conso Rwayitare are involved in a dispute over ownership of the shares, with Conso arguing that she owned 50%, which she received on her marriage, and inherited the other 50% on her husband's death. Oral argument on the matter was due to be heard next year.
Sanchez said Pietersen and Conso Rwayitare had opposed the court action brought by Investec but it was found that they had no locus standi, as shareholders cannot intervene.
"To date we have not received any notification of an action to stop the sale of execution, but if they launch one Investec will intervene," said Sanchez.
Pietersen said in court papers Rwayitare's refusal to pay him for the Rwandan project had ruined him financially, forcing him to retrench staff at his architectural firm.
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