The High Court in Pretoria has rejected the application of a director of two religious organisations to void a subpoena compelling his appearance as a witness at an inquiry, citing infringement of his religious freedom.
The court action follows an investigation by the appointed liquidators into SNS Holdings (Pty) Ltd, which operated an unlawful pyramid scheme. The public invested about R650 million in the scheme. In July 2020, SNS was placed in final liquidation by court order.
Prior to its liquidation, SNS Holdings paid R6 295 101.30 to Champions Royal Assembly NPC. Similarly, SNS Holdings paid R8 283 112.82 to Joshua Iginla Ministries NPC.
It was argued that the payments were donations made to the church as acts of worship by the SNS directors SC Sibiya and NP Sibiya.
These payments were set aside as impeachable dispositions, and the court ordered Champions Royal Assembly and Joshua Iginla Ministries to return the funds. However, no money was recovered. Consequently, both Champions Royal Assembly and Joshua Iginla Ministries were placed in provisional winding-up in March 2023.
Both organisations operated under the direction of Nigerian “prophet” Joshua Lasisi Iginla and his wife, Zimasa Iginla (née Ndamase).
Another thing the two organisations had in common was that they shared the same director, Mandlakayise Prince Ndamase.
An investigation by the liquidators found that Champions Royal Assembly paid Ndamase R1 042 000. They also discovered that Joshua Iginla Ministries had paid him R115 000.
As part of the private inquiry into SNS’s affairs, Ndamase was summoned to appear before the commissioner and asked to provide:
- His employment contracts with Joshua Iginla Ministries and Champions Royal Assembly.
- IRP5/IT3(a) employee tax certificates from both organisations.
- Tax returns submitted to SARS from 1 January 2019 to 1 January 2020.
- All payslips received from these organisations and any other employer during that period.
At the inquiry, Ndamase’s legal representatives objected to the summons. The commissioner dismissed these objections, leading to the High Court review of the decision.
During the review, Ndamase argued that providing the requested documents would unfairly violate his right to privacy and claimed that the summons infringed on his constitutional right to freedom of religion, because donations made at a church are considered acts of worship.
The liquidators contended they had the right to investigate whether the payments made to the applicant by Champions Royal Assembly and Joshua Iginla Ministries were lawful. They claimed that if the inquiry found that the payments were part of a money-laundering scheme or were impeachable, they may seek restitution from the applicant. They argued that the applicant’s employment records and tax returns were crucial for determining whether the payments were legitimate earnings.
In the judgment delivered on 13 May, Acting Judge Yvan Coertzen ruled that the documents requested were relevant to the inquiry and appeared to be connected to the trade, dealings, affairs, or property of SNS.
“There is reason to believe that the documents requested will shed light on the affairs of SNS before the winding-up,” Coertzen AJ said.
Regarding the matter of religious freedom, the judge noted that Ndamase stated in the founding affidavit that the investigation was initiated because of donations made by the Sibiyas to the church.
“The argument seems to be that the Sibiyas exercised their religious rites by making donations to the church as an act of worship. I fail to see how, on the facts, the inquiry and the summoning of the applicant as a witness may constitute an infringement of the Sibiyas’ right to freedom of religion. As pointed out by the liquidators, the payments made to Champions Royal Assembly and Joshua Iginla Ministries were made by SNS, not the Sibiyas.
“For the same reasons, I fail to see how the summons violates the applicant’s right to freedom of religion. The applicant’s argument fails on the very distinction that the applicant wishes to draw from the facts.”
The judge ruled to dismiss the application and ordered Ndamase to cover the liquidators’ costs, including that of senior counsel.
The ruling requires Ndamase to testify at the inquiry as requested by the liquidators.
Click here for the full judgment.
