Mzi Khumalo loses forex violations battle

Mining magnate Mzi Khumalo has lost his drawn-out legal battle against a decision by the South African Reserve Bank to forfeit his assets and shares worth R1bn, says a BusinessLIVE report. Last week, Judge Hans Fabricius ruled against Khumalo in an application he brought in November 2011. At the time, the bank had served Khumalo – empowerment partner of the late Brett Kebble – with the order of forfeiture on the grounds that he had flouted exchange control laws. The bank found Khumalo violated exchange control laws when he negotiated a loan of R760m with Deutsche Bank London for his Mawenzi Resources and Finance Company. The flouting of laws related to how Khumalo pledged shares he had bought from Harmony Gold in a BEE scheme to Deutsche Bank.