Mafia Soul closes down

Sharon Mathala | Thursday September 1, 2016 15:56

 

 

According to papers before court soul fashion group is cited as the first respondent whilst one of its owners Molefi Nkwete has been cited as the second respondent. 

It is said that on or about June 28 2011 Mafia Soul (Urban Soul) entered into a lease agreement with Turnstar Holdings (Game City mall). The lease agreement was that Mafia Soul was to pay monthly rental of P20,509.47 per month and thereafter the rental would escalate at the rate of 10 % per annum compounded. 

“As at the date of institution of these proceedings, the monthly rental had escalated to P 27,750. The 1st defendant (Mafia Soul) would pay operating costs in the amount of P 1,690.53 excluding VAT per month for the first year of lease.” 

The store situated at the game city mall was also to bare the costs of any other charges of electricity and water on the premises during the period of the lease.

The court papers further state: “should the rent remain unpaid for a period of seven days after the 1st day of each month then interest shall be charged at 2 % above prime rate of First National Bank of Botswana (currently 7.5%) calculated daily and compounded monthly”. 

The agreement was for a period of five years from July 2011 to be terminated on August 31 2016. 

“In breach of the lease agreement, the 1st defendant has failed to make due payments on due dates. As at the institution of proceedings against the 1st defendant, the plaintiff was claiming payment of the total sum of P113,589.88 being outstanding rentals,” the court papers reads.

However court documents indicate that Mafia Soul only paid P 20,000 on June 10 and July 22 2016 respectively.

“Since the aforesaid payments the 1st defendant’s arrears have escalated to the amount of P164,594 due to the monthly rental, operating costs and utility charges accruing on the 1st July 2016 and on the 1st August 2016”.

The case will go for arguments on December 6 at Gaborone High Court.