Latest news with #R2.6
IOL News
13-06-2025
- Business
- IOL News
Court ruling leads to business rescue for Azrapart, owner of Fourways Mall
The South Gauteng High Court has put Azrapart, which owns half of South Africa's largest shopping center, Fourways Mall, under business rescue after it was unable to pay Investec and First Rand Bank R2.8 billion. Image: Fourways Mall/Facebook The South Gauteng High Court has put Azrapart, which owns half of South Africa's largest shopping center, Fourways Mall, under business rescue after it was unable to pay Investec and First Rand Bank R2.8 billion. Azrapart's only business activity relates to the joint ownership and management of Fourways Mall, a super-regional shopping centre in Fourways, Johannesburg. The other half of the mall is owned by listed fund APF. Azrapart is controlled by Eriologix, which is in turn controlled by the Michael Family Trust. The ruling caps off a series of court matters, including one in March in which both Investec and First Rand Bank, acting through its Rand Merchant Bank, argued that Azrapart owed them R2.3 billion, which it was unable to pay. 'As a result, the court found that there is no doubt strong indications that the first respondent is in financial distress,' the latest ruling handed down earlier this month stated. To further complicate matters, in May 2024, the Competition Tribunal decided that the two banks that successfully placed Azrapart under business rescue, could take control of the mall owner in a bid to restructure Azrapart's debt. In March this year, Azrapart argued that it was in the process of finalising a transaction with Redcore Hospitality, a company registered in the United Kingdom. In terms of this transaction, it would receive a capital injection of R2.6 billion. This, the mall owner argued, would enable it to pay its debt. 'In an affidavit filed on behalf of the first respondent, there was an undertaking that the first respondent [Azrapart] would make payment of the R2.6 billion so received to the applicants [Investec and First Rand], which would be more than sufficient to cover the liability of the first respondent towards the applicants.' In the March ruling, the issue arose of whether this amount would be paid, and final judgment for the banks' application to have Azrapart placed under administration. Between March and June, Azrapart filed several applications indicating that the cash injection would be forthcoming. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading However, a subsequent investigation revealed that Redcore didn't actually have the money it needed to pay Azrapart. 'It appears then that, having regard to all the information placed before it, this Court still cannot find with any measure of certainty that the R2.6bn will be transferred to the first respondent by Redcore. It follows that the first respondent should now be placed in business rescue,' the South Gauteng High Court said in June. It added that this will 'enable the independent rescue practitioners to assess any agreement with Redcore, and if determined viable, to pursue such transactions further in the first respondent's business rescue proceedings'. Under the latest ruling, Piers Marsden and Lance Schapiro have been appointed as joint interim business rescue practitioners. As part of the process, the mall owner has been placed under supervision. The Fourways Mall partnership came about in 2015, when the Competition Tribunal approved a merger between Accelerate Property Fund and Azrapart, owners of property in the Fourways area. 'It was found that neither merger would have an impact on competition,' it said. IOL
IOL News
12-06-2025
- Entertainment
- IOL News
The Labubu craze: A toy sculpture sells for R2. 6 million in China
Labubu figures are displayed at a Pop Mart store in Shanghai, China. Image: STRINGER / IC photo / Imaginechina via AFP A Beijing auction house has sold a four-foot-tall sculpture of a viral plush toy character for more than $150,000 (R2.6 million), as global demand for the Chinese-designed Labubu dolls reaches fever pitch. The rabbit-like figures sporting mischievous grins began as a character created by Hong Kong-born artist Kasing Lung and are made by Beijing-based toy brand Pop Mart. They have been endorsed by celebrities such as Rihanna and Dua Lipa, and fans have queued overnight outside stores hoping to snag one, with analysts pointing to the phenomenon as evidence of China's growing soft power. On Tuesday, a teal sculpture depicting a Labubu character with a furry body and head fetched an eye-watering 1.08 million yuan ($150,260) at an auction held in Beijing, according to the auction house's app. The sculpture is "the only piece of its kind in the world", according to Yongle International Auction. It was offered alongside other Labubu paraphernalia, including a brown statue that sold for 820,000 yuan. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Pop Mart has over 400 stores globally, including 30 US branches. The worldwide frenzy has seen people go to desperate lengths to acquire their own Labubu. Last month, a London branch of Pop Mart suspended in-store sales of the toys, fearing violence from would-be buyers who failed to get their hands on the limited-edition Labubus. In Singapore, CCTV footage captured a family stealing Labubu dolls from a claw machine, according to Singaporean online media outlet AsiaOne. Burglars broke into a store in California last week and took several Labubu dolls along with electronics and other valuables, American news outlet ABC reported. In China, the toys have been promised as freebies for new bank customers -- an incentive quickly shut down by local regulators, according to Chinese media reports. The toys have spawned a booming resale market as well as an online community of fans sharing tips on how to customise their dolls. Knockoffs, many of which are also made in China, have flooded online platforms, dubbed "Lafufus" by social media users. AFP
IOL News
28-05-2025
- Business
- IOL News
Insights from Liberty's 2024 claims statistics: a closer look at health trends and financial protection
Liberty has announced a substantial increase in claims payouts for 2024, totalling R7.35 billion, with insights into health trends and the importance of risk protection for policyholders. Image: IOL Liberty has revealed its claims payouts for 2024, showing a significant increase in benefits paid to policyholders and their families. The majority of claims came from the insurer's flagship retail cover, Lifestyle Protector, which paid out a total of R7.35 billion to 28,889 individuals and beneficiaries. On average, each claimant or their family received R260,000 over the year. According to Liberty, its Corporate Benefits also made substantial payments, with R2.6 billion going to 11,198 individuals. Claims from Liberty's funeral and credit life products, some of which are sold via Standard Bank, contributed a further R1.99 billion to the total payout. The insurer's annual Claim Statistics offer insights into health trends, economic challenges, underinsurance, and industry shifts, highlighting the tangible value of Liberty's risk protection products. 'Our personal risk claim payouts show an increase of 11.8% from 2023. This demonstrates our range of risk protection benefits and the true value delivered by insurance and corporate benefits in a time when South Africans are overburdened by life's challenges. The payouts provide those affected and their families with financial resources to navigate adversity with confidence in their most vulnerable moments. This assistance goes a long way towards protecting what matters most,' says Mark Barberini, head of comprehensive life solutions at Liberty. Across Liberty's Lifestyle Protector range, it said there was notable growth in claims across all major categories. Life Protection payouts increased by 9.5% to R5.5 billion, Lifestyle Protection surged by 20.4% to R1.2 billion, while lump-sum Income Protection claims climbed by 18.5% to R507 million. Monthly income protection claims rose by 11.6% to R267.3 million. Although life claims made up the bulk of payments, the increase in claims under Lifestyle Protection benefits suggests that people are surviving longer with critical illnesses. Early detection and quicker access to treatment have played a role in this trend, reinforcing the need for living benefits and frequent preventative medical screenings. 'Insights like these point to a need for more comprehensive lifestyle protection cover, as death and unexpected medical diagnoses are not the only risks that can have a significant effect on your family and lifestyle. Unexpected life events, such as retrenchment, can also have a serious impact,' says Andrew Methmann, Liberty's chief specialist for Risk Pricing. As anticipated, the group says most claims came from older clients, with the average age at claim being 60 for women and 64 for men. However, 25% of male claimants were under 55, while 35% of female claimants were younger than 55.'With 2.2% of claims coming from individuals under the age of 35, it is evident that death, disability, and critical illness can affect anyone, regardless of age, and happen unexpectedly. It is important to encourage younger people to take out cover while they are still young and also in better health, potentially making their risk cover cheaper,' Methmann says. According to the group, in 2024, men accounted for 64.8% of overall claims, while women made up 35.2%. Liberty's client base is nearly evenly split between genders, yet a larger proportion of male clients are older, making them more likely to claim. Cancer remained the leading cause of claims, accounting for 31.2% overall, followed by cardiovascular disorders (22.3%), respiratory disorders (5.8%), musculoskeletal disorders (5.5%), and nervous system disorders (5.3%). Among women, cancer caused 37.2% of claims compared to 27.9% for men. 'The higher prevalence of cancer among women can be attributed to the high incidence of breast cancer among South African women. Notably, 46.9% of cancer-related claims submitted by women were for this specific form of the disease. For men, the most common cancer was prostate cancer, accounting for 31.9% of male cancer claims,' says Liberty's chief medical officer, Dr Reinhardt Erasmus. Musculoskeletal disorders were the primary cause of income protection claims, making up 22.7%, followed by cancer at 16% and retrenchment at 9.9%. Chief specialist for Liberty's lifestyle protector cover, Kresantha Pillay, notes that while retrenchment claims declined in 2024, the importance of income protection remains critical. 'In 2024, most retrenchment claims occurred in the 35 to 44 age band, with 38.6% of claimants being female and 16.8% male. Overall, 64.4% of retrenchment claims were from women, whilst 35.6% were from men. This reveals a stark contrast in retrenchment claim trends, showing that in 2024, women filed nearly twice as many retrenchment claims as men. This signals a troubling imbalance in job security and underscores the critical need for income protection among women, highlighting the urgency for them to explore tailored financial solutions and safeguards,' says Pillay. Gauteng recorded the highest number of retrenchment claims at 47.5%, followed by the Western Cape at 28.7% and KwaZulu-Natal at 14.9%. Serious mental disorder claims made up 2.8% of all retail claims, with 51.1% of these being life protection claims. Tragically, suicide accounted for the majority of these. Liberty paid out over R1.3 billion in funeral claims, assisting 80,345 families in honouring their loved ones, the group says.
The Citizen
08-05-2025
- Business
- The Citizen
KleuterZone CEO provisionally sequestrated
Kobus Schoeman received more than R2.6m in payments over 10 months in addition to his salary, say liquidators. KleuterZone's Kobus Schoeman continued to disseminate misleading messages to investors, even after reports that the franchise defaulted on dividends. Picture: KleuterZone website The personal estate of former KleuterZone CEO Kobus Schoeman was provisionally sequestrated on Wednesday (7 May). He did not oppose the application. Schoeman declined to comment on the matter, stating to Moneyweb that he may do so at a later stage after consulting his legal representatives. He is the second high-profile individual in the KleuterZone franchise to be provisionally sequestrated, following the sequestration of founder Anthonie Bougas's estate on 8 April. Bougas's parents, Rensche and Anton, are also facing provisional sequestration. They must give written notice of their intent to oppose the application by the end of Thursday (8 May). ALSO READ: KleuterZone's collapse: Parents of founder also facing sequestration Schoeman's sequestration application Hannes Muller and Madelein Kuilder, joint provisional liquidators of KleuterZone Pty Ltd, argued in their 17 April affidavit to the Western Cape High Court that Schoeman's conduct as CEO raised concerns about fund misappropriation, investor money abuse, and ongoing unlawful activity post-liquidation. They detail Schoeman's continued involvement in KleuterZone's affairs even after its provisional liquidation on 26 March 2025. According to the affidavit, Schoeman misappropriated funds and improperly disposed of assets and has continued to dissipate funds through third parties, including his immediate family members. A review of the financial records shows that in addition to receiving a declared salary of R60 000 per month as CEO of KleuterZone, Schoeman received total payments amounting to more than R2.6 million between April 2024 and February 2025. ALSO READ: Another KleuterZone company in provisional liquidation Payment for 'legal services' The payments included sums invoiced for 'legal services' rendered to KleuterZone, although Schoeman was disbarred as an attorney in 2018. 'The absence of proper documentation substantiating the services rendered, combined with his ineligibility to practice … evidences the legitimacy of the misappropriation of investor funds.' The liquidators further note that Schoeman used his children as financial conduits to 'conceal the flow of misappropriated funds'. Between June 2024 and February 2025, over R490 000 was transferred to Schoeman's bank account from his son's account. Additionally, R301 000 was deposited into his account from his daughter's account. Moreover, on 7 and 8 March this year, soon after the first reports about KleuterZone's financial viability were published, Schoeman transferred R400 000 and R600 000 to the bank account of his mother-in-law. 'No documentation has been offered as to the basis on which she would be entitled to such large amounts.' ALSO READ: KleuterZone share certificates reference companies that do not exist Misleading investors According to the liquidators, Schoeman continued to disseminate misleading messages to investors, even after reports that KleuterZone had defaulted on dividend payments. '[After] it became evident that the company was both factually and commercially insolvent and unable to meet its obligations … [he] continued to portray the company as solvent and on the verge of recovery.' The liquidators note that on 1 March, Schoeman sent correspondence to two investors in which he promoted additional investment opportunities in KleuterZone schools. ALSO READ: Bougas estate provisionally sequestrated Provisional liquidations So far, five of the KleuterZone management companies have been placed into provisional liquidation: KleuterZone Pty Ltd; KleuterZone Operations; KZ Ventures; KleuterZone Empowerment; and KleuterZone Holdings. The liquidation of ABS Productions, Bougas's company known for producing promotional films, music videos, and event videography, has been finalised. This article was republished from Moneyweb. Read the original here.
IOL News
22-04-2025
- Business
- IOL News
Reassessing South Africa's diplomatic missions: balancing budget cuts and economic growth
In the midst of budget pressures, calls have been made by political parties to close some South African diplomatic missions across the world. This has been done previously by the Department of International Relations and Cooperation (DIRCO). The danger of such a blunt approach is that in pursuit of saving a few million in a budget of R2.6 trillion, we may actually do more harm than good to our fundamental task of stimulating economic growth and creating decent jobs. Is there a need to reconfigure and reposition our diplomatic presence? Without a doubt. This should be done in a way that attracts investment and boosts export opportunities and tourism for our economy. Politicians are correct to demand savings across our diplomatic missions. Many of the buildings are too large and expensive. More affordable ones should be secured. Should many of our diplomats spend less time at cocktail functions? Without a doubt. All departments should seek consistently to reduce wastage and improve efficiency, especially in the context of fiscal constraints and the need to ensure allocations to protect the poor, invest in critical infrastructure, and stimulate growth are prioritised. What we need to avoid is a rush to close diplomatic missions in pursuit of saving money today but foregoing future investments and trade opportunities. Years of blunt budget cuts have shown the real dangers and unintended consequences of decapacitating the state. The dangers of this will arise when South Africans are stranded overseas without access to an embassy to help them or issue an emergency passport, or South Africa being caught unaware of trade or political disputes at great cost to local industries. SARS has shown a path to capacitating the state by investing in its personnel, management, infrastructure, and capacity, and whilst there is a bill to be paid today, society reaps the rewards with a growing economy in the future, thus ensuring the state has the revenue needed to fund the public services society depends upon. A more nuanced approach is needed that balances short-term savings with long-term investments. Embassies, like all other state organs, need to be shaken up from time to time. Such a reconfiguration is overdue, but it requires a long-term vision coupled with greater efficiency. Closing embassies saves money today, but it also denies greater trade and investment in the future. In the past few years, amongst others, we have closed our missions in Chicago, the financial hub of the American Midwest, and Finland, a relatively small nation, but also home to Nokia and other key start-ups, and one with deep historic ties to South Africa and the region. Does squeezing DIRCO's relatively modest budget and compelling the closure of missions help boost investment from Chicago or open greater export opportunities to Finland? Likely not. What we should support DIRCO to do, with the support of key departments, e.g. Home Affairs, Tourism, Higher Education and Training, and most critically Trade, Industry and Competition, is to support a repivoting of our missions' mandates and provide them the tools to attract badly needed investment, export opportunities, and tourism. Our missions need to have strong political heads who can ensure our bilateral relations with our host countries are healthy and alert government to issues needing interventions long before they arise. The turbulence in our relations with the US is a case in point. The other key mandate of our missions must be to boost trade and investment. All missions must be required to meet set targets annually and be provided with the necessary technical support to achieve this, including from key economic sectors. The recent announcement by the Minister for Trade, Industry and Competition, Mr. Parks Tau, that DTIC currently does not have any trade attaches at our missions, must be an alarm bell and a dire warning about the dangers of recklessly cutting key departments' budgets. The point of deploying strong trade attaches is to unlock trade and investment opportunities and tackle blockages to South African exports. This fundamental task is very difficult if we do not have skilled people in place to do so. DIRCO's recent deployment of a senior agricultural attaché to our embassy in the US is a welcome intervention to resolving long-simmering agricultural trade issues. Tourism is a major growth sector and employer with over 800 000 jobs and with massive untapped potential. Despite the best efforts of the Department of Tourism over the years, we still have much greater space to unlock its potential. This requires supporting our embassies with the necessary technical support to boost tourism arrivals, including opening more direct flights from key tourism markets. Home Affairs' investments in staff, filling critical vacancies, enabling online visa applications, and digitising operations is key to boosting tourism as we will never be able to have an embassy in every single corner of the world. Embassies should be tasked to identify international education opportunities for young South Africans. This will not only boost their own career and earning potential but bring the skills the economy needs to grow. This is exactly why China, under Deng Xiao Ping, sent thousands of students to study in the US, Europe, and Japan in the 1970s. The recent de facto enslavement of South Africans desperate for work in Myanmar is a reminder of why we need to have a presence across the world. Similarly, for our own tourists whose passports may be stolen and thus stranded and unable to travel. In a globalised era where organised crime has no borders, our law enforcement and security organs need to have access to their peers to be able to protect South Africa from such activities.
