Paul Ekon, the flamboyant young multimillionaire who hosted Deputy President Thabo Mbeki’s 50th birthday party, had a bizarre legal skirmish with a former Robben Island inmate who Ekon claimed accused him of drug dealing and hit-squad involvement.
It has recently emerged that Ekon (36) brought a R500 000 defamation action against African National Congress member and ex-political prisoner Peter-Paul Ngwenya in August 1994, but withdrew it 10 months later, days before the scheduled Rand Supreme Court hearing.
Papers filed by Ekon’s lawyers claimed Ngwenya had said Ekon “is a drug dealer”; that Ekon “worked with [former Security Police chief General] Basie Smit with a hit squad”; and that Ekon “was associated with the Robert Smit murders”.
Ngwenya, a corporate relations specialist, denied in responding court papers that he had made the allegations. But the Mail & Guardian understands “warnings” about Ekon who had befriended a number of top ANC leaders, possibly already before the organisation was unbanned in 1990 were circulated in the ANC at the time. Leaders were informed about an internal background check on Ekon.
Ngwenya this week confirmed details of Ekon’s defamation claim against him, and of its last-minute settlement. Ngwenya said he made no apologies and gave no undertakings: Ekon withdrew the suit and partly refunded his legal expenses. “My feeling is he knew if it came to court he couldn’t afford the negative publicity … I was quite prepared to defend.”
The M&G last month reported Ekon’s claim to have co-sponsored Mbeki’s 1992 birthday bash with two friends, “ANC tailor” Yusuf Surtee and clothing industrialist Charles Priebatsch. Both are on good terms with top ANC leaders.
Ekon’s claim came after axed deputy minister Bantu Holomisa charged that hotel magnate Sol Kerzner had paid for the party, among other favours to ANC leaders. Mbeki broke his silence to confirm Ekon’s version. But Holomisa, citing “privileged information”, maintained Ekon had only acted as a “go-between” for Kerzner. The party, attended by Kerzner among others, was held at Ekon’s plush Houghton home.
Questions remain about the circumstances in which Ekon who is friendly with Kerzner and dated Kerzner’s ex-wife Anneline Kriel in the early 1990s left South Africa last year to base himself in London. Ekon said he left because of a “business opportunity”, denying he was the subject of a police investigation relating to foreign exchange irregularities or trade in precious materials.
Ekon last month told the M&G he had called ANC lawyer Ishmail Ayob, who in turn would have elicited an assurance from Safety and Security Minister Sydney Mufamadi that he was not under investigation.
Ayob confirmed he acted for Ekon “in commercial matters”, but said: “It seems to me you have something in your mind that is so big that the minister [Mufamadi] is involved … Ministers don’t deal with such matters … Logic will tell you you don’t pick up the phone to ask the minister, ‘Are you looking for my client?'”
Ekon also referred the M&G to a letter lawyer Kobus du Plessis had written on his behalf a year ago to the South African Police Service, Interpol and the Witwatersrand attorney general’s office. Ironically, Du Plessis’s firm of attorneys, David H Botha, Du Plessis and Kruger, has also represented former Civil Co-operation Bureau (CCB) operatives.
The letter says in part: “It is common cause that our client is presently resident in London, England, mainly due to business obligations. His intention remains to return to the Republic of South Africa as soon as possible, notwithstanding any possible police or other investigations against him.
“Notwithstanding rumours and/or allegations … it was confirmed to advocate E du Toit by your Mr Herman de Beer [of the attorney general’s office] that our client is not currently a suspect in any criminal investigations, nor is he needed for any questioning … Client confirms your Mr De Beer’s confirmation that no warrant of arrest has been authorised against him.”
Ngwenya this week said Ekon’s defamation claim resulted from discussions he had in July 1994 during talks on a significant “black empowerment” initiative for South Africa. The deal, which was driven by European interests and Ekon, and which in principle had the blessing of the ANC, later collapsed.
During the course of the talks, he had been asked for a reference on Ekon, which he gave after making inquiries in the ANC. Ngwenya said Ekon asked Gauteng Premier Tokyo Sexwale to mediate on the court action. A meeting with Ekon ensued, during which Ekon offered to withdraw the defamation claim in exchange for an apology. Ngwenya refused, saying he was prepared to meet Ekon in court.
Court papers show a settlement of the matter on June 19 last year, two days before the scheduled hearing. Ekon was not available for comment at the time of going to press.