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[1] This is an application for the final sequestration of Mr Mmbulaheni Robert Madzonga (‘Mr Madzonga’). The applicant avers that he was a co-perpetrator who knowingly participated in a fraudulent scheme which caused the VBS Mutual Bank (‘VBS’) a loss of at least R1 521 925 280.46 and that accordingly, as a joint wrongdoer, he is jointly and severally liable to the applicant for that loss.

[2] The estate of Mr Madzonga was provisionally sequestrated on 3 August 2018 by an order granted by His Lordship Mr Justice Tsoka.[1]

[3] Mr Madzonga denies that he is insolvent. His primary contention is that the applicant has failed to establish a liquidated claim against him as required in terms of s 9(1) as read with s 12 of the Insolvency Act 24 of 1936 (the ‘Insolvency Act’).[2] Secondly, Mr Madzonga avers that he disputes the applicant’s claim on bona fide and reasonable grounds, and lastly, that the applicant has not made out a case for the relief it seeks.

[4] The crux of Mr Madzonga’s defence is that he knew nothing of the fraudulent scheme or the financial position of VBS, or the financial position of Vele Investments (Pty) Ltd (‘Vele’), a company that was the primary recipient of proceeds derived from the fraudulent scheme. He states that he did not knowingly benefit from the alleged fraudulent scheme.