Fidentia curatorship & resignation of Mr Dines Gihwala

On 26 June 2014, the FSB received a written resignation from Mr Dines Chandra Manilal Gihwala as a curator of the financial services business of Fidentia Asset Management (Pty) Ltd, Bramber Alternative (Pty) Ltd and Fidentia Holdings (Pty) Ltd (Fidentia). Mr Gihwala was appointed as provisional curator of Fidentia by the Western Cape High Court on 1 February 2007 in terms of the provisions of the Financial Institutions (Protection of Funds) Act, 2001 (FI Act). His appointment was made final on 27 March 2007. As a formality, Mr Gihwala’s appointment must be cancelled by the same Court and the FSB will in due course make application in terms of the provisions of the FI Act for an appropriate order. On the same day that Mr Gihwala tendered his resignation as a Curator of Fidentia the FSB became aware of a decision handed down by the High Court which contained adverse findings against Mr Gihwala.

Now that Mr Gihwala has resigned as a curator the FSB will need to approach the Court
regarding the appointment of a new curator. The court will be approached by application
where we will recommend a new curator but up it is up to the court to decide. In the interests
of transparency we plan to apply for a provisional appointment and then publish this with an
invitation to interested parties to comment or object to that appointment before finally
appointing.

We are of course subject to court process but we anticipate that we will be in a position to
approach the court within the next few weeks. Mr George Papadakis is still a curator on
Fidentia. The FSB is aware of the recent media statements linking Mr Papadakis to the
allegations against Mr Seedat. By virtue of the fact that curators are appointed by the court,
the court will have to consider how to respond should the allegations prove to have
substance. The FSB, however, in exercising its duties will continue to oversee the curators
and will closely monitor developments so that we can respond appropriately.

Regarding costs and disbursements from the Curatorship there have been 12 reports put
before court and published on our website giving on going updates as to the progress of the
curatorship and the costs attached thereto. In November 2013 the new Registrar of FAIS
instructed an audit into the fees and costs of the curatorship. The FSB has completed a
reconciliation of all fees paid to the curators and legal costs incurred. The audit will be
completed by an external independent auditor.