South African businessman Lazarus Zim sued for $7 million in BEE dispute

South African businessman Lazarus Zim is facing a $7 million lawsuit tied to a Black Economic Empowerment (BEE) transaction involving Northam Platinum Holdings Ltd. According to court filings, former stockbroker Peter Wayne Roberts has lodged a claim at the Johannesburg High Court, seeking R123.7 million ($7.04 million) plus interest dating back to September 2021.

Roberts alleges broken BEE agreement

Roberts alleges Zim failed to honor an oral agreement connected to Northam’s 2014 BEE restructuring. Zim, who chaired Northam at the time, has denied the claims and plans to fight the case. His lawyers declined to comment, citing the ongoing litigation. Roberts maintains that he was promised a 20 percent stake in a company representing Zim’s interests while advising on a new self-funded BEE structure. That restructuring gave rise to Zambezi Platinum, which in 2014 acquired a 31.4 percent stake in Northam under a 10-year lock-in agreement.

The dispute centers on what happened years later. Roberts argues that Zim reworked the arrangement without including him, effectively leaving him out of the benefits. When Northam repurchased preference shares in September 2021, Zambezi Platinum paid out more than R9.4 billion ($539 million) to its shareholders. Roberts claims he should have received roughly R123.7 million ($7 million) from Zim’s portion of the distribution, but instead received nothing. Zim, through entities including Atisa Platinum, is said to have benefitted from the payout.

Zim’s journey through power and leadership

Now 62, Zim is one of South Africa’s most prominent corporate figures, having held top positions across mining, telecoms, and financial services. He is the founder of Zanozi Properties & Commodities and has previously served as CEO of Anglo American South Africa, Managing Director of MTN International, and chairman of Telkom SA, Kumba Iron Ore, and TransHex Group. He also led the Chamber of Mines of South Africa and spent a decade as chairman of Northam Platinum, stepping down in 2017 after helping establish Zambezi Platinum.

Beyond mining, Zim has held non-executive board roles at Sanlam, MTN Group, AngloGold Ashanti, and Tongaat Hulett. In 2005, he was named African Business Leader of the Year. He was once linked to the Gupta family, key players in South Africa’s state capture scandal, though reports suggest he ended those ties in 2010.

Legal risks cloud empowerment transactions

The case against Zim highlights the legal and financial risks around empowerment transactions, especially those based on verbal agreements. It also underscores the continuing debate over how BEE deals are structured in the mining sector. A ruling in Roberts’ favor could influence how similar disputes are handled in the future, at a time when companies like Northam Platinum are navigating growth plans in a turbulent commodities market.