Collen Mashawana Foundation faces liquidation over unpaid legal bill

A Gauteng law firm has applied for an order to liquidate a non-profit organisation owned by businessman and philanthropist Collen Mashawana.

Africa Daily can exclusively reveal Nethavhani Attorneys have applied for an injunction to liquidate The Collen Mashawana Foundation after it failed to pay the law firm’s paltry R8,000 legal bill.

In the court papers which Africa Daily has seen, the law firm director Khathutshelo Nethavhani is pleading with the high court to place the foundation under provisional liquidation, saying that it is insolvent.

He is arguing that the organisation is unable to pay its debts despite being formally asked to settle the outstanding amount.

In his founding affidavit, Nethavhani claims that the foundation owes him R8,050, which stems from the legal services they rendered.

The law firm represented the foundation after FNB approached the Johannesburg High Court seeking to recover at least R1 million from the entity, accusing it of failing to complete four of the 12 houses in a R3 million housing project aimed at providing homes for vulnerable South Africans.

This was despite the foundation having received the full donation upfront from the bank.

Nethavhani states that following the foundation’s failure to remit payment for the services rendered, he dispatched a letter of demand.

The letter of demand was served on the foundation on 7 April 2026, he said.

He said although Austin Mashawana, one of the directors of the foundation, acknowledged receipt of the letter, the organisation still failed or refused to pay the outstanding quantum.

He also said the foundation failed or refused to provide security for the debt or make arrangements to settle it.

He argued that the foundation should therefore be deemed unable to meet its financial obligations or to pay its debts in terms of the relevant provisions of the Companies Act.

Nethavhani stated that the court should grant him an order placing the foundation under provisional liquidation in the hands of the Master of the High Court.

He is also asking the court to issue a rule nisi calling on the foundation and any interested parties to provide reasons why a final liquidation order should not be granted.

He further seeks an order directing the sheriff to serve the provisional liquidation order at the foundation's registered office and principal place of business.

Nethavhani also requests that the application be brought to the attention of the South African Revenue Service (SARS) and known creditors with claims exceeding R5,000.

He states that he does not know the full extent of the foundation's assets and liabilities.

The court papers further indicate that the applicant's attorneys have been asked to provide the security required for the liquidation proceedings and serve the relevant documents on the Master of the High Court.

Nethavhani maintains that he has a liquidated claim against the foundation and that the statutory requirements for bringing the application have been met. Both Nethavhani and Mashawana had not responded to our written questions at the time of publication.