The High Court of Lesotho’s Commercial Division, ordered that Platinum Credit Limited pay more than M351 million to Platcorp Holdings Limited and Premier Credit South Africa, following a lengthy legal battle.
The judgment, handed down by His Lordship Justice Mokhesi, marks a major victory for the two financial companies in a case that has highlighted the risks of money laundering within the region’s credit markets.
The Case
The dispute began when Platcorp Holdings and Premier Credit South Africa filed a lawsuit against four defendants: Motena Lishea, Nthabiseng Nthako, Platinum Credit Limited, and the Commissioner of the Central Bank of Lesotho. The crux of the lawsuit revolved around outstanding “debts” owed by Platinum Credit to the plaintiffs. According to the court papers, these debts accumulated over time and resulted in the financial companies seeking legal recourse.
In a judgment, Justice Mokhesi struck down the defenses presented by the first, second, and third defendants — Lishea, Nthako, and Platinum Credit — effectively clearing the way for the plaintiffs to claim the full amount of what was owed.
Judgment Breakdown
The court’s decision involved two key claims made by the plaintiffs. In the first claim, Platinum Credit Limited was ordered to pay a staggering M31,917,600. This amount will also accrue 18% interest per annum, calculated from October 2022 until the debt is settled.
In the second and far larger claim, the court ordered Platinum Credit to pay an eye-watering M271,143,742. Interest on this sum is set at 15% per annum, starting from October 2023. Combined, these two claims result in a total payout of M351,813,677, a figure that could increase further as interest continues to mount.
Writ of Execution: Bank Accounts Seized
As part of the court’s ruling, a writ of execution was issued, allowing the court’s sheriff to recover the money owed by seizing Platinum Credit’s assets. On September 26, 2024, the sheriff, ‘Makabelo Ntoi, took swift action and attached over M210 million from Platinum Credit’s accounts at Standard Bank.
According to court documents, these funds were immediately transferred into the trust account of Webber Newdigate Attorneys, the legal team representing Platcorp and Premier Credit. However, despite this significant seizure of funds, Platinum Credit still owes more than M144 million to the plaintiffs, along with any additional interest that will accrue until the final payment is made.
Legal Costs and Further Proceedings
In addition to the massive payout ordered by the court, Platinum Credit Limited will also be responsible for covering the legal costs incurred by the plaintiffs, adding further financial pressure on the company. The court noted that the exact costs would be taxed and determined at a later date, meaning the total amount owed by Platinum Credit could still rise.
Meanwhile, the court postponed judgment against the first and second defendants, Motena Lishea and Nthabiseng Nthako, sine die(indefinitely), meaning their fate in the case remains unresolved for now.
Moving Forward
For now, Platinum Credit faces a significant challenge in settling the remainder of its debt, with more than M144 million still outstanding. As interest continues to accumulate on this amount, the total could grow even higher.
With the sheriff having already seized substantial assets from Platinum Credit’s accounts, the company will be under intense pressure to find a way to fulfill the court’s demands.
