First National Bank (FNB) has instituted legal action against the Collen Mashawana Foundation, accusing the non-profit organisation of failing to complete a R3 million housing project intended to provide homes for vulnerable South Africans.
In summons filed in the Johannesburg High Court, FNB is seeking to recover R1 million from the foundation after alleging it failed to finish four of the 12 houses it had undertaken to build despite receiving the full donation upfront.
In the papers,which Africa Daily has seen, the bank alleges that it entered into a donation agreement with the foundation in May 2024.
During the signing of the agreement, FNB was represented by one of its employees, Ghana Msibi, while the foundation was represented by its founder, buniessman and philanthropist Collen Mashawana.
According to the court papers, the R3 million donation was paid on 17 May 2024 to fund the construction of 12 homes for elderly people, persons with disabilities and child-headed households identified by the foundation.
Although the parties initially concluded the agreement orally, they later signed a written donation agreement on 15 August 2025 confirming the terms of the project after three houses had already been handed over.
The agreement required the foundation to complete the remaining houses in accordance with an agreed rollout plan. It further provided that if the foundation failed to deliver the homes within the agreed timelines, FNB would be entitled to recover the value of the undelivered houses together with interest.
The rollout plan was later amended, giving the foundation additional time to complete the project. Under the revised schedule, the remaining four houses were due to be handed over between 26 and 29 November 2025.
However, FNB alleges that despite the extension and several engagements between the parties, the final four houses , which were supposed to cost R250 000 each, were never completed.
The bank says it formally warned the foundation in September 2025 that it would seek reimbursement if the revised deadlines were not met. The foundation allegedly acknowledged the concerns and undertook to honour the amended rollout plan, but the outstanding houses remain incomplete.
FNB contends that only eight of the 12 houses have been constructed and handed over, leaving four houses with a combined value of R1 million outstanding.
“On 9 March 2026, a letter of demand (dated 6 March 2026) was sent by the plaintiff to the defendant demanding payment of the sum of R1,000,000.00 (one million) for the four remaining houses that have not been delivered to date.
Despite demand, the defendant has failed and/or refused and/or neglected to pay the sum of R1,000,000.00 (one million rand), which is due, quing and payable by the defendant to the plaintif in terms of the Amended Donation Agreement,” reads the letter.
As a result, the bank says it has cancelled the donation agreement and is asking the high court to order the foundation to repay R1 million, together with interest and legal costs.
In the alternative, FNB argues that should the written donation agreement not be enforceable, the court should uphold the oral agreement concluded between the parties and grant the same relief.
Mashawana has not responded to our written questions at the time of publication.
