A legal dispute over a R44.7 million annuity belonging to the late former Deputy President David Mabuza has resulted in a court order preventing its payout. The Mpumalanga High Court issued an interim interdict, stopping financial services firm Alexforbes from paying the funds to Mabuza’s second wife, Nonhlanhla Mnisi.
The dispute involves Mabuza’s first wife, Emunah Silinda, and their daughter, Tamara Silinda, who argue that they should benefit from the money. The court has urged the family to reach a settlement to avoid a prolonged legal battle.
At the heart of the case is the type of financial product involved—a living annuity. Alexforbes explained that, by law, a living annuity must be paid directly to the person the policyholder nominated as a beneficiary. This is different from a pension fund, where trustees have discretion to distribute funds among dependents.
Mabuza had nominated his second wife as the sole beneficiary. However, the first family claims Mabuza had intended to update his beneficiary nominations but never completed the required paperwork before his death.
The case highlights the importance of having clear and updated estate plans. The judge noted that such family disputes often leave lasting emotional scars. The matter will proceed through the courts if the parties cannot reach an agreement.