Alexforbes caught in the middle because the former deputy president delayed signing important documents.
It seems Alexforbes is being painted as the bully who wanted to pay nearly R45 million to a politician’s second wife and leave his first wife and their daughter destitute.
The saga has attracted a lot of attention, with the contest for the money erupting only weeks after former deputy president David Mabuza passed away on 3 July 2025. In addition, R44.7 million is a lot of money.
The problem is basically that Mabuza nominated his second wife, Nonhlanhla Mnisi, as the beneficiary of his life annuity which was administered by Alexforbes.
Mabuza’s first wife, Emunah Silinda, and daughter, Tamara Silinda, objected and applied to court for an order to prevent Alexforbes from paying Mnisi.
The Mpumalanga High Court issued an interim order to stop the payment, urging the parties to come to an agreement in the matter.
The court heard different arguments, including claims that Mabuza never divorced his first wife, Silinda, although it was not disputed that they had separated.
Another claim was that Mabuza and Mnisi were not officially married, although they lived together and had two children.
Curiously, Mabuza and Silinda were not formally married either. The court heard that they were married in terms of customary law.
Silinda’s legal representatives also stated that Mabuza intended to make changes with regard to the nominated beneficiaries of the annuity, but never got around to it. In essence, Mabuza reportedly informed Alexforbes he wanted to add beneficiaries to his living annuity, but never submitted their details or signed the required documents.
ALSO READ: Court makes call on David Mabuza’s pension millions
Catch-22
Alexforbes ended up in the middle.
“Alexforbes has noted the interim order delivered by the Mpumalanga High Court on Wednesday 30 September 2025, in the case brought by Emunah Silinda and Tamara Silinda,” it says in a statement in response to the court order.
“While we respect the [judgment], Alexforbes is currently reviewing our legal options in response, especially the unjustified cost order against us, considering that Alexforbes had complied fully and timeously with the Court’s directions.”
While Alexforbes says it is policy not to disclose clients’ personal affairs, the public court case necessitated an explanation.
“We believe it is important to clarify the legal framework that applies in this matter,” it says.
“On retiring in early 2023, the late Mr DD Mabuza elected not to retain his pension benefit in the Political Office-Bearers Pension Fund. Instead, in terms of the fund’s rules, he chose to transfer the full value of his pension to purchase a living annuity from a registered insurer – specifically a living annuity product from Alexforbes.
“A living annuity is an insurance product, regulated by the Long-Term Insurance Act and the Income Tax Act, where the policyholder’s nominated beneficiaries receive the remaining capital portion of the investment upon death.
“In law, the insurer must pay the nominated beneficiaries and there is no discretion to depart from this. Any departure would have significant legal consequences,” it says.
ALSO READ: Lawyer says Mabuza’s nomination is ‘only a wish’ as family battles for R44m pension
Different products, different rules
Alexforbes states that a living annuity is not a retirement fund and is not governed by Section 37C of the Pension Funds Act.
It says the distinction between a living annuity and a pension fund is “critical”.
“Whilst retirement fund death benefits are distributed in accordance with Section 37C at the discretion of fund trustees to identified dependants and nominees, this does not apply to a living annuity. Living annuities are distributed strictly in accordance with the policyholder’s beneficiary nomination form and do not form part of the deceased estate.
“Retirement funds (including pension, provident, retirement annuities and preservation funds) fall under Section 37C, requiring trustees to consider the relationships of the deceased, underpinned by the principles of fairness, to determine legal and factual dependency for the allocation of benefits,” according to Alexforbes.
It says that its role as administrator of living annuity products is to act within the legal framework.
“We remain committed to engaging transparently, upholding the law as it stands and providing certainty to our clients and their families during what is often a difficult and sensitive time,” it adds.
ALSO READ: Mpumalanga high court ruling expected on David Mabuza’s multi-million investment
Process
That the court issued an interim order to prevent the payment to Mnisi means the matter has now became a court process.
Silinda and daughter Tamara were within their rights to approach the court. As applicants, they have put Alexforbes in the position of one of the respondents in the application process.
The road forward, the eventual outcome, and whether there will be years of court cases will depend on the parties themselves.
The Mpumalanga High Court ruled that the applicants convinced the court that they had a prima facie right to obtain an interim interdict, which warrants the court to hear further arguments in the matter – if necessary.
Judge Johannes Roelofse asked the family members to settle the dispute.
“We see so many of these kinds of disputes in courts. The only thing that remains after all of this happens is scars between family members that never heal or take very long to heal.
“See how you can settle this dispute.”
ALSO READ: Court makes call on David Mabuza’s pension millions
Wills Week
It was Wills Week just two weeks ago.
This is an initiative of the Law Society of SA that prompts banks, insurers, lawyers and specialised trusts companies to launch campaigns every year in September to tell people how important it is to have their affairs in order.
While a living annuity requires a beneficiary to be nominated and the assets in the annuity do not form part of the estate, the same ‘estate’ principles may apply, especially if a living annuity is worth millions.
The Law Society warns about the problems if somebody dies and their affairs are not in order.
“Your assets [might] not be left to the person of your choice, there can be extra and unnecessary costs and there can be unhappiness and conflict among members of your family because there are no clear instructions,” it says.
ALSO READ: These are the problems you’ll leave behind if you don’t have a will
Procrastination causes problems
Emily West, director of trusts and estates at law firm Cliffe Dekker Hofmeyr, warned people about procrastinating in this regard during a comprehensive podcast during Wills Weeks.
“A lot of people do not understand the importance of this and the problems it causes,” she says, warning that loose ends can delay things for years.
Capital Legacy, which specialises in estate planning, reiterates that procrastination about ensuring that things are in order can leave your family in an awkward position.
“An hour of your time is all that’s required to draft your will and get your affairs in order,” it says.
A long and emotional battle might be ahead for Mabuza’s family, all because he did not take five minutes to sign a few documents to update the beneficiaries of his multi-million-rand annuity. The money could have been divided within weeks of his death.
This article was republished from Moneyweb. Read the original here.
