Businessman suing for R10m over ‘Gangster State’ wins early battle

A preliminary court skirmish involving journalist Pieter-Louis Myburgh, author of the book Gangster State: Unravelling Ace Magashule’s Web of Capture, has gone the way of a businessman suing him for R10m.

Vikash Narsai sued in 2019 over a chapter in the book which claimed Narsai and his company, Nexor 312, were among “a band of politically connected contractors” involved in a R220m housing project near Vrede in Free State.

The Durban businessman said Myburgh and publisher Penguin Random House SA had accused him and his company of being part of corrupt activities, which was false and defamatory.

In a Durban high court judgment on Monday, judge Graham Lopes said Narsai specified 12 portions of chapter 16 in the book which accused him and his company of:

• paying bribes to secure access to tender work;
• unlawfully obtaining work outside of lawful tender processes by corrupting government officials; and
• taking part in schemes to defraud the government by siphoning-off funds intended for housing projects.

Lopes was ruling on an application by Myburgh and Penguin for two issues to be decided separately: whether chapter 16 defamed Narsai and Nexor 312; and if so, how.

He dismissed the application, saying there was “no merit in determining at the outset whether the 12 statements (and, indeed, any others, alleged to reflect the chapter within the context of the book) are defamatory”.

Magashule threatened to sue Myburgh for defamation but has not yet done so.

Speaking at a launch in Cape Town in April 2019, Myburgh said: “The issues unpacked in the book are clearly very well researched and it is factually based, and I speak to people on the record.

“[Magashule] must keep in mind that if it does end up there, obviously we will defend it and we are able to rely on quite a large body of documents and individuals who would come to testify.

“So if he’s willing to have this issue play out in court, it would be a very healthy way for us to deal with some of these issues unpacked in the book.”

Last month in Daily Maverick, Myburgh reported more allegations against Narsai in relation to the Vrede housing project. 

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