Mbuli - no stranger to litigation over unpaid debt - is in hot water for allegedly reneging on an agreement to pay the Matlosana City Council the 20% he would have made from a roadside billboard at the entrance to Klerksdorp on the road from Potchefstroom.
Mbuli, his wife Savita, and their company Zazise Communications, were ordered in March by the Pretoria High Court to give a full account, supported by vouchers, of income derived from the billboard from November 2006 to date.
On Friday the council asked the court to declare Mbuli and his company in contempt of court for failing to comply with the March order. If Mbuli fails to comply, the municipality asked that it be granted leave to apply for an order that he be jailed for a period determined by the court.
The council claims that Mbuli, a presenter of SABC's Morning Live breakfast show, entered into an agreement with it in February 2006 to erect and manage billboards on municipal ground for nine years and that his company would pay it 20% of the advertising income monthly.
The council claims that Zazise Communications had secured advertisements since November 2006 but failed to pay it its share. When the dispute went to court in March, Mbuli did not file opposing papers, so the court ruled in the council's favour by default.
According to the council, Mbuli personally negotiated the terms of the contract and must be held accountable - his company was in "clear violation and disregard" of the court order.
The municipality claims that, at the time of the negotiations, Mbuli said the area could accommodate a minimum of 12 billboards, from which his company expected an average monthly income of R5 000 per billboard or R60 000 aggregate monthly income. He promised the council a potential R12 000 a month.
Mbuli said he was aware of the litigation against him but preferred not to comment. Savita said she was no longer involved with the company.
"Vuyo is the one running the company. I left the company 18 months ago," she said.
The case was postponed to July 30.
In October 2010, the Mbuli's were dragged to court by the Airports Company of SA (Acsa). The company was after their R5million luxury holiday home, a six-bedroom and five-bathroom mansion in the popular Eastern Cape resort town of Port Alfred. This was after Zazise was awarded an advertising contract by the company but failed to deliver.
The court ruled in Acsa's favour and ordered the couple to pay the Airports Company about R4.3 million. The couple's home and furniture were attached.
In February, the couple was reportedly granted leave to defend a lawsuit brought by their lawyer, Eric Mabuza, who represented them against the Airports Company. He went to the Johannesburg High Court to file a R105 437.87 plus 15.5% interest claim against the couple for his services.
Source: The Times via I-Net Bridge
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