Background
The dispute started in 2016 when a Cape Town businessman, Mahmood Khatib, signed a bond for a vehicle‑leasing deal between his company, MK Exotics, and Fleet Africa. When MK Exotics failed to pay, Fleet Africa chased a debt of almost R6 million.
Arbitration and Early Enforcement
The case went to arbitration, and in November 2022 the arbitrator awarded Fleet Africa R5.99 million. An enforcement order followed in April 2024, leading to the seizure of Khatib’s household goods and four vehicles.
Claims About Asset Transfers
Khatib’s son then said one of the seized vehicles belonged to him and that the other three were owned by a company called South African Destination Management Company (SADMC), of which he was the sole director. He also claimed SADMC bought Khatib’s house and its contents in May 2024, with the handover in July 2024.
The sheriff recorded Khatib saying he had no movable or immovable property and could not pay the debt. The court viewed this as an insolvency act under the Insolvency Act.
Judge’s Concerns
Acting Judge Van Zyl noted that SADMC was created after summonses were already issued against Khatib and that the son was a university student at the time. The judge said:
“It takes little imagination to realize that this could well all be a deception and that SADMC was set up so that the first defendant could avoid owning assets in his own name.”
Because of these suspicions, the judge ordered a bankruptcy trustee to investigate further transactions.
Fleet Africa’s Legal Standing
There was a question about whether Fleet Africa, described as a “division” of Super Group Africa, had the right to bring the claim. The court rejected the challenge, saying the description in the court file was clear and there was no doubt about who was pursuing the debt.
Financial Snapshot of Fleet Africa
According to Super Group’s 2025 annual report:
– Revenue: R1.24 billion (up 9.7 % year‑on‑year)
– Operating profit: R286.1 million (up 11.4 %)
– Operating margin: 23.1 % (up from 22.7 %)
What Happens Next
The interim enforcement order will be reviewed again in August. Interested parties can argue why a final enforcement order should not be granted. Until then, the trustee’s investigation will continue.
Conclusion
The Western Cape High Court has stepped in to prevent what it sees as a possible scheme to hide assets. While Fleet Africa moves forward with its claim, the court’s order for a trustee investigation aims to uncover any hidden property or misleading transactions. The outcome in August will decide whether the businessman must finally pay the debt or face further legal consequences.
