South African DJ and music entrepreneur Ashley Kholofelo Raphala, known as DJ Shimza, has been removed as a director of Kunye Records due to allegations of financial misconduct and failure to disclose business interests. The allegations were made by fellow director Hannes Hoffmeister in papers filed at the Companies Tribunal. The tribunal recently delivered a judgment in favour of Hoffmeister, ordering Shimza's immediate removal as a director.
According to court documents, Shimza failed to disclose his role as a director of Just Exists, a company that received a payment of over R700,000 from Kunye Records' business account. In 2024, Shimza completed a Shareholders Confirmation without revealing his connection to Just Exists. The payment, amounting to R752,000, was made from Kunye's account to Just Exists.
The court papers also allege that Shimza established two brands, U'R and Shimza, between 2021 and 2023, while serving as a director of Kunye Records. These brands operated in the same entertainment space as Kunye and worked with some of the same promoters, creating a conflict of interest. Hoffmeister argues that Shimza's actions amounted to direct competition with Kunye while he remained a director.
Hoffmeister claimed that Shimza used company funds to benefit a competing business linked to him and leveraged Kunye's relationships with promoters for events outside the company. In one instance, Shimza allegedly appropriated funds from Kunye and deposited them into the account of a competitor.
In addition to Shimza, Jarrad Evan Treger, another director of Kunye Records, was also accused of misconduct. Hoffmeister alleged that Treger made an undisclosed payment to his then-partner, Sarah Opperman, and made further payments without the approval of Kunye shareholders. Treger was also accused of invoicing Kunye for private expenses at overseas hotels.
The Companies Tribunal ruled in favour of Hoffmeister, ordering the removal of Shimza and Treger as directors of Kunye Records with immediate effect. The tribunal also directed the Companies and Intellectual Property Commission to update the company's records to reflect the removals.
Despite his removal, Shimza has continued with public appearances, headlining the Kunye Jozi XI event at Huddle Park in Johannesburg. The event sparked conversation about his removal from Kunye Records.
Key points
- DJ Shimza was removed as a director of Kunye Records due to allegations of financial misconduct and conflict of interest.
- The allegations against Shimza include failure to disclose business interests and using company funds for personal gain.
- Shimza and Treger were ordered to be removed as directors of Kunye Records with immediate effect.
Reporting sources
- The Sowetan · The Sowetan
