PEOPLE’s poet Mzwakhe Mbuli is drowning in a cesspit of debt.
Mbuli is about to be declared insolvent because his liabilities far outstrip his assets.
News of his insolvency, which has been kept hush hush, burst on to the public domain after Mbuli’s first wife Nomsa informed the muso she had filed for a divorce decree.
The ex-couple, who married in community of property and have two kids, have had a messy separation since 2008 after Nomsa filed a domestic violence case against the ex-convict.
Our deep throat, who is privy to the musician’s private life, says Mbuli discovered he was insolvent after receiving information that Nomsa was planning to fight for the division of their joint estate.It is alleged Mbuli owes creditors about R2m.
Mbuli owes giant record label EMI Music about R500,000, which he used to pay Sars.
He also has a R150,000 motor vehicle loan with Stannic and a R70,000 home loan with an undisclosed bank.
Mbuli also owes businesswoman Zandile Ngubane R650,000, which she lent him to organise the Siyabakhumbula Awards last year.
“We thought he got money from the national lottery, so we were surprised by these claims. But the court will leave no stone unturned to get to the bottom of this,” says our informant.
Our mole says Mbuli also owes Mantladi Bethuel Nkadimeng R450,000, which he needed to pay the City of Johannesburg and a Standard Bank motor vehicle account.
Our source says the only valuable property in their joint estate is their Mondeor house, which is worth about R1m.
“So if their liability is about R1.5, it means their estate is insolvent. He needs to formally apply for voluntary insolvency. A liquidator will then be appointed to evaluate the estate,” says our source.
“Once that has been done, the liquidator will have to put an advert in a newspaper inviting all the creditors to come forward.
“So because the value of his assets is outstripped by his liabilities, creditors will have to share the little money from the estate.
“Then Mzwakhe will not qualify for any credit for 10 years, after which he will have to prove that he is rehabilitated before he can qualify for credit again.”
Another source close to Nomsa says she plans to distance herself from Mbuli’s loans.
“She has a strong case against him. He made all these loans without her consent, even though they are married in community of property.
“He made these loans after she filed for divorce,” says the source.
“So she has nothing to do with these loans, unless he can prove that they were helping their estate.
“I think this is an attempt by him to make sure that she doesn’t get anything from their joint estate, and she worked hard for that house.”
Nomsa declined to comment: “This is a legal matter and I prefer not to talk about it and my private life in the media.”