Court gives wine farm owners more time

The owners of the defunct Stables Wine Estate were granted more time yesterday to explain why R3.4 million worth of the estate's assets should not be held as security for their debts.

An application brought by the Economic Development and Tourism Department against the estate came before the Pietermaritzburg High Court again yesterday, but was adjourned by consent to allow the owners, Judy and Tiny van Niekerk, to file opposing papers.

However, a temporary order authorising the sheriff to take the wine estate's moveable property and assets and hold them as security for the debt remained in place.

The couple were given until December 12 to say why the order should not be finalised.

In an affidavit, Economic Development and Tourism Department head Carol Coetzee said that Gijima, a support programme of the department, had granted the estate funding because, according to the Van Niekerks' proposal, it was "economically advantageous".

The total cost was R5.4m, but Gijima only agreed to supply R3.8m. According to the agreement, the estate would use the money to make itself more competitive and sustainable by increasing its number of vines and expand its existing wine-producing capacity. It would also encourage more tourists by offering entertainment and a restaurant.

Coetzee said the estate had failed to provide Gijima with reports and feedback on how the project was being implemented.

Last month, Judy van Niekerk told The Mercury that she and her husband only became aware that Gijima had taken legal action against them when they read about the court application in the media. She denied owing Gijima any money.

The Mercury

Posted at 08:14AM Nov 25, 2011 by Editor in Agricultural  |