A major insurance corporation has sought legal action to seize a fleet of vehicles linked to the business empire of Edwin Sodi, a figure known for controversy. The move comes after millions of rands, originally allocated by the Development Bank of Southern Africa (DBSA), vanished, according to a Sunday World report.
Hollard Insurance, which provided guarantees for Sodi’s enterprise to receive funds from DBSA for the advancement of a correctional facility project in Parys, Free State, has petitioned the Joburg High Court for authorization to auction off nearly 100 vehicles registered under Sodi’s NJR Projects (NJR).
The application follows NJR’s failure to reimburse DBSA for over R39 million in upfront payments, prompting DBSA to seek reimbursement from Hollard Insurance.
Hollard stated that NJR had placed a bond on its movable assets to provide ongoing coverage for any potential debt claims by the insurance company.
The assets encompass a variety of vehicles, including five Bell TLBs, a BMW X3, two Chevrolet Utility vehicles, a Ford Fiesta, 41 Ford Rangers, 10 Hino trucks, 15 Mazda CX3s, four Mercedes-Benz vehicles, six Nissan NP200s, three tankers, three Toyota bakkies, and eight VW vehicles.
According to NJR, these movable assets were unencumbered and fully settled at the time of bond registration. However, the tender, originally slated for completion by February 20, 2022, was terminated due to Sodi’s company’s failure to achieve practical completion of the project within the specified timeframe, as detailed in court documents. On October 28, 2022, the insurer received a letter of demand from DBSA, seeking payment of over R11.5 million concerning the advance payment guarantee.
Subsequently, Hollard received another letter of demand from DBSA on December 12 of the previous year, this time for payment exceeding R28 million regarding the performance guarantee. On January 16 of the current year, Hollard issued a demand letter to NJR, via its legal representatives, LLP Attorneys, requesting payment of over R39 million from Sodi’s enterprise.
“Accordingly, it is my respectful submission that the respondents are indebted to the applicant in the amount of R39 820 769 as a consequence of the aforementioned, together with interest thereon, from the date upon which.
“The applicant has made payment in respect of the guarantees to date of payment given to the respondents.
“In light of what is stated herein and above, I pray for an order as per the notice of motion to which this affidavit is annexed,” Hollard’s head of guarantee, Shaheel Jawair, stated in the papers.
Hollard asked the court to authorise and empower the sheriff, to enter the premises of NJR and take possession of the entity‘s movable assets.
Sodi, Ramahlaleroa and NJR said Hollard, should be interdicted and restrained from dealing with, or alternatively, deposing the assets attached, pending the finalisation of their dispute.
