Media mogul Given Mkhari’s broadcasting empire has been dealt a costly financially blow after his companies which own Power FM and Capricorn FM agreed to repay more than R24 million to investment giant Lebashe Investment following a bruising legal battle that has simmered for years.
The repayment agreement emerged after Lebashe Investment successfully secured an arbitration award and subsequently approached the Johannesburg High Court to have the settlement made an order of court.
While the court papers do not disclose what the money was originally advanced for, Africa Daily understands that the funding was linked to Lebashe Investment’s bid to acquire shares in MSG Afrika Broadcasting, which would have given it a stake in Power FM and Capricorn FM, the popular commercial radio station based in Limpopo.
MSG Afrika Group and its subsidiary, MSG Afrika Broadcasting, which owns Power FM and Capricorn FM, have now agreed to repay the money in instalments stretching into 2027 after an arbitration ruling handed down on April 20, 2026.
Lebashe Investment, which owns Tiso Blackstar, the publisher of leading newspaper titles including Sunday Times, Business Day and Sowetan, instituted claims against the Mkhari-controlled entities for the repayment of more than R41 million advanced to the companies.
According to court papers, the funds were paid in separate tranches of approximately R17 million and R24 million, although the precise purpose of the payments is not disclosed in the settlement agreement.
News that MSG Afrika and MSG Afrika Broadcasting had agreed to repay the money emerged after Lebashe Investment filed an application in the Johannesburg High Court seeking to have the settlement agreement, which forms part of an arbitration award, made an order of court.
In its application, Lebashe Investment asked the court to enforce an arbitration award issued on April 20, 2026.
“That the arbitration award dated 20 April 2026, incorporating and/or attaching the settlement agreement concluded between the applicant and the respondent, be and is hereby made an order of court in terms of section 31(1) of the Arbitration Act 42 of 1965,” the application states.
The settlement agreement provides that MSG Afrika Broadcasting will settle the debt through monthly instalments of R3 million beginning in June 2026 and continuing until January 2027.
The broadcaster is required to pay R3 million on or before June 30, 2026, a further R3 million by July 31, 2026, and another R3 million by August 31, 2026.
Additional payments of R3 million are due on or before October 31, November 30 and December 31, 2026. A further payment exceeding R3 million must be made by January 31, 2027.
Court papers further state that a final payment covering outstanding interest must be made by February 28, 2027.
The agreement contains strict provisions requiring compliance with the payment schedule.
“A final payment in respect of the outstanding interest to be made by 28 February 2027. The second defendant shall ensure that all payments are made punctually, without deduction or set-off. Any late payment, partial payment, dishonoured payment, or failure to adhere to the payment schedule set out above shall constitute a material breach of this agreement.
“In such event, the claimant shall be entitled, without further notice, to demand immediate payment of all outstanding amounts and same will become immediately due and payable to the claimant,” the settlement agreement reads.
In a supporting affidavit, attorney Talia Filipe Simpson of Nicqui Galaktiou Inc Attorneys said Lebashe Investment instituted arbitration proceedings against MSG Afrika Group and MSG Afrika Broadcasting following a dispute between the parties.
“The arbitration culminated in an arbitration award handed down by retired Judge Meyer Joffe on 20 April 2026, in terms whereof the settlement agreement concluded between the applicant and the respondent was incorporated into and made an arbitration award,” she stated.
Simpson said the relief sought in the current proceedings was directed at MSG Afrika Broadcasting, while Lebashe Investment’s claim against MSG Afrika Group had been stood over in terms of the settlement agreement.
“The arbitration award is final and binding on the applicant and respondent. No application for the review, setting aside, variation or remission of the arbitration award has been launched, nor, to the best of my knowledge, is any such application pending or contemplated.
“The award is valid, operative, executable and capable of enforcement once made an order of court,” she said.
Pressed for comment Mkhari said will not comment as the matter is before court.
“ I have not seen the papers, I will check with our lawyers. But for something that is before court, my position is very clear , I prefer not talk about it,” he said.
