High Court in Johannesburg has dismissed a R4.378 million ($263,524) summary judgment application brought by Regional Railways and Road Logistics Solutions against Shingai Group, founded by South African business leader and former CEO of MTN Cameroon, Philisiwe Sibiya, giving the company an opportunity to defend the claim over disputed trade financing advances and repayments.

Acting Judge Allen ruled that the plaintiff had failed to establish the outstanding balance with sufficient certainty, finding that conflicting payment records, competing calculations and questions over the terms of the financing arrangements raised factual disputes that must be resolved at trial.

Disputed trade finance advances

The dispute centres on a trade facility agreement concluded in November 2020, under which Regional Railways and Road Logistics Solutions advanced R1 million ($60,073), and an addendum signed in February 2023 providing a further R2.7 million ($162,197). Together, the documented advances amounted to R3.7 million ($222,256).

However, the plaintiff sought R4.378 million ($263,524), representing a difference of R678,000 ($40,729) above the recorded capital advances. The court found that establishing the amount outstanding required a detailed examination of the total funds advanced, repayments made, how those payments were allocated, profit-sharing arrangements and interest calculations.

Allen also questioned the documentation supporting the claim, noting that the plaintiff had produced only one addendum for the R2.7 million ($162,194) advance despite relying on additional payments for which corresponding addendums had not been submitted.

Court questions repayment calculations

The judge further challenged the plaintiff’s position that its claim represented capital alone and excluded interest and other charges. Without the missing agreements and a comprehensive reconciliation of the transactions, the court said it could not determine whether Shingai Group’s repayments had been applied exclusively to the capital balance.

Shingai Group disputed the amount claimed, maintaining that payments had been made in good faith while the parties awaited reconciliation of the outstanding balance. The company also questioned the authority of the individuals who signed the agreements and raised issues concerning their subsequent implementation and the parties’ conduct.

The court held that these matters involved genuine factual disputes that could not properly be settled through summary judgment proceedings. Instead, they required a full examination of the evidence at trial.

Group granted leave to defend

Shingai Group was founded and is led by a South African chartered accountant and business executive, a former chief executive of MTN Cameroon who serves as the company’s founder, chairperson and chief executive.

The court consequently dismissed Regional Railways and Road Logistics Solutions’ summary judgment application, granted Shingai Group leave to defend the action and ordered that costs be costs in the cause, meaning they will be determined as part of the main proceedings.

The plaintiff had initially cited Samuel Kachikoti and Philsisiwe Gugulethu Sibiya as the second and third defendants. However, during argument, it was confirmed that it was no longer pursuing claims against them.

The ruling does not determine whether Shingai Group ultimately owes the amount claimed. It allows the underlying dispute over the financing arrangements, repayments, and outstanding balance to proceed to trial.