DJ Shimza fired from Kunye Records over 'financial misconduct'

Internationally acclaimed DJ and music producer DJ Shimza has been expelled from Kunye Records following allegations of financial misconduct levelled against him.

Africa Daily can exclusively reveal that DJ Shimza and his co-director, Jarrad Evan Treger, have been given the boot by their fellow shareholder, Hannes Hoffmeister, following allegations of financial misconduct, including unauthorised payments, undisclosed financial interests and the use of company funds for personal benefit.

The explosive details, which will send shockwaves across the entertainment ecosystem, are contained in Hoffmeister's affidavit which DJ Shimza and Treger attached to the papers they filed in the Western Cape High Court where they are challenging their dismissal from the entity.

According to the papers, which were filed in the high court on 22 September this year, Shimza, whose real name is Ashley Kholofelo Raphala, and Treger, were pink slipped from the incorporation by the Companies Tribunal following an application by fellow shareholder Hannes Hoffmeister, who is based in Spain.

In his application, Hoffmeister accused the two directors of breaching their fiduciary duties and the company's shareholders' agreement through various financial transactions, alleged conflicts of interest and failures in corporate governance.

Allegations against DJ Shimza

Among the allegations against Shimza is that he failed to disclose his interest in Just Exists (Pty) Ltd, a company of which he was allegedly a director, despite Kunye having paid the company R752 000 between 2022 and 2024.

According to Hoffmeister, the payments included R300 000 on 31 July 2022 for sponsorship of SOL PTA in July 2022, R120 000 on 1 February 2023 for a Standard Bank sponsorship of a Kunye Johannesburg event, R300 000 on 3 March 2023 for a SOL/Heineken sponsorship of a Kunye Johannesburg event and R32 000 on 1 March 2023 for a KwaZulu-Natal sponsorship in April 2023.

Hoffmeister further alleges that on 2 April 2024, Strongbow paid Kunye R540 000 which was transferred to Just Exists the following day under the reference "Just Exist Refund", despite no refund being due and without board approval.

He alleges that a separate payment of R185 000 was made by Kunye to DJ Shimza's entity Shimuzic on 1 August 2023, despite the transaction not having board approval and the expense allegedly not being related to supporting the company's events.

Hoffmeister also lists payments allegedly made to Shimza's personal tour manager, known as "Lets Push" or "Stuff", on 18 July 2023, 20 November 2023, 26 March 2024, 14 June 2024 and 18 July 2024. Hoffmeister claims these payments were made without board approval.

Further payments, he said, were allegedly made to "Zito", identified as Shimza's personal photographer, on 5 March 2024, 15 April 2024 and 3 July 2024, also without board approval.

Hoffmeister additionally alleges that Shimza charged Kunye R12 000 on 3 April 2024 and again on 3 July 2024, despite no provision in the shareholders' agreement or board resolutions authorising the payments.

He also accuses Shimza of establishing two entertainment brands, U'R and Shimza & Friends, which allegedly competed directly with Kunye by targeting the same audience, booking similar artists and hosting events in other South African cities.

Allegations against Treger

Hoffmeister also accused Treger of using company funds to pay personal expenses and making payments without the necessary authorisation.

On 13 December 2022, Treger allegedly arranged a payment to his then girlfriend, Sarah Opperman, for marketing services, despite her allegedly not having submitted an invoice or lacking marketing background or qualifications.

He further alleges that Treger charged Kunye more than the agreed R6000 fee stipulated in the shareholders' agreement without approval from the board or an amendment to the agreement.

The examples include a payment of R18 761 to Jet Black Curation and another payment of R94 268.12 to Jet Black on 19 February 2024.

Treger is also accused of invoicing Kunye for personal expenses without providing receipts or explanations. These allegedly included accommodation at Hostel Talamanca in Ibiza on 30 May 2024, a R50 000 payment on 7 December 2023, spending at the 100 Club in London on 6 June 2024, and R1 561.66 spent at Sainsbury's and Dishoom in Covent Garden on 10 June 2024.

Other alleged personal expenses included R3 623.40 at Capitol Trilogy on 5 July 2024 and a R700 fuel purchase at Engen on the same day.

Hoffmeister further alleges that Treger received R185 000 on 30 August for a Durban event without prior board approval.

Other payments questioned include R250 000 for "PTA Services" on 23 November 2023 and R50 000 paid to Treger on 7 December 2023.

Treger is also accused of misrepresenting himself as Kunye's sole beneficial owner in a certificate submitted to the Companies and Intellectual Property Commission, allegedly leaving out Shimza and Hoffmeister, who each held 33.3% of the shares.

However, Shimza and Treger have approached the Western Cape High Court seeking to have the tribunal's decision reviewed and set aside, arguing that they were removed without being given a proper opportunity to respond to the allegations.

Kunye Records was established in November 2021, with Shimza, Treger and Hoffmeister each holding 33.3% of the company's shares.

Shimza and Treger were the company's only directors until the tribunal's decision.