K-word, jail, threats as 'friends' fight over R54m

A bitter dispute over a multimillion-rand deal that went sour has sparked a bizarre racism row and led to a prominent former Robben Islander spending hours behind bars just days before Christmas.

Politically connected businessman Peter-Paul Ngwenya, who spent almost five years on the island, is embroiled in a fight over stakes in three lucrative radio stations with Fani Titi, chairman of specialist banking group Investec and of Kumba Iron Ore.

The conflict stems from Ngwenya's claim that Titi owes him close to R54-million. It degenerated last June when Ngwenya called Free State-born Titi a "Qwaqwa k****r" and a "bantustan boss" in an SMS intended for Titi's business partner Aqueel Patel.

In the same SMS, Ngwenya tells Patel that "you will bleed" and that Titi "will see his mother", which Titi regarded as a threat to his life since Ngwenya knew his mother had died.

Mediation attempts by COPE leader Mosiuoa Lekota, a Robben Islander and a friend of both men, failed.

A week before Christmas, Ngwenya handed himself over to Randburg police in connection with charges of contravening a protection order granted to Titi against him. He was released the same day.

Ngwenya is due to appear in court tomorrow. He also faces a R1.8-million defamation action brought by Titi.

At the centre of the fight is a claim by Ngwenya that he is owed close to R54-million by Titi. This is allegedly from joint deals in which they bought stakes in GagasiFM and HeartFM through Makana Radio Communication for R48.8-million. They also later acquired a stake in KayaFM.

The fight intensified after a drama at the MRC offices in Sandhurst, Johannesburg, in November when armed security guards and police escorted Ngwenya from the building. Ngwenya had gone to collect his part of dividends. According to Titi, Ngwenya threatened staff.

block_quotes_start I deeply regret that a more than decade-long friendship and business association has deteriorated to the point where I have been forced to approach the courts for the necessary relief against Mr Ngwenya

Ngwenya said he and Titi had been partners in acquiring stakes in the radio stations. Ngwenya got 16.667% of GagasiFM, 16.667% of HeartFM and 6.24% of KayaFM through his company Columbia Media (Pty) Ltd.

He said he was prejudiced by Titi, who led negotiations for the deals. He alleged he was short-changed regarding his benefits, ownership rights and other proceeds from shares and sale of the stakes.

"It is true I sent the SMS in anger because I was frustrated. Since 2015 I had been asking for what was due to me. The stations were doing well and there were profits, but I got some payouts in dividends and at some point nothing would come and there were also sales. I asked Titi to give me financial statements and they were not coming for some time, and I thought there was something not right."

The tussle over the millions got so bad that Lekota attempted to mediate in July after the June SMSes.

The three met at Titi's home in Sandhurst in a bid to find a solution.

"All I can say is I tried to intervene when I realised there was a misunderstanding, but I failed," said Lekota.

Following the meeting, Ngwenya wrote an e-mail to Titi on July 12 detailing his demands.

"It both pains and aggravates me the extent to which the above guiding principles were manipulated and discarded by you significantly to my prejudice ... I have been severely prejudiced in respect of my ownership rights, benefits and other proceeds."

Titi responded on July 28, telling Ngwenya that his demands were unreasonable and that they should rather deal with the dispute legally.

"I see from your proposal, that this is not, however, the position. You persist in making claims for which there is no basis ... Needless to say your proposal is rejected in its entirety," Titi said in his response.

The previous day Titi had approached the Randburg Regional Court for a protection order against Ngwenya.

In a statement, Titi said he had to protect himself because no amicable solution could be found.

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"I deeply regret that a more than decade-long friendship and business association has deteriorated to the point where I have been forced to approach the courts for the necessary relief against Mr Ngwenya."

Titi's spokesman, Timothy Schultz, said this week: "Mr Titi and Mr Patel felt compelled to approach the court after receiving a threatening SMS from Mr Ngwenya, which also contained racial slurs and defamatory and injurious content."

Ngwenya told the Sunday Times that Titi had no reason to have him arrested.

"I was subjected to an avalanche of summonses starting with an application for a protection order after I had been invited to his house in Sandhurst," said Ngwenya.

Titi said Ngwenya should approach the courts if he was "serious" about his claims. Ngwenya said he was preparing to lodge a dispute through the courts.