FSB: CMM Cash Management Fund portfolio and Corporate Money Managers (Pty) Ltd (“CMM ”) and its associated companies placed under curatorship

The North Gauteng High Court today granted a final order whereby the business of the CMM Cash Management Fund portfolio and the financial services business of Corporate Money Managers (Pty) Ltd (“CMM ”) and its associated companies namely CMM Finpro (Pty) Ltd, Miro Capital (Pty) Ltd, Four Rivers Trading 307 (Pty) Ltd, Regent Group Capital (Pty) Ltd, Escape Investments (Pty) Ltd and Corporate Money Managers Treasury Services (Pty) Ltd (hereinafter referred to as the entities) were placed under curatorship in terms of section 5 of the Financial Institutions (Protection of Funds) Act, 2001. Simultaneously an application by Teba Bank Ltd for leave to intervene in the matter in order to support the confirmation of the curatorship was granted by the court.

This followed the submission to the court of a report by the curators, Messrs JRG Polson and Louis Strydom, who investigated the affairs of the entities over the past six weeks. The curators came out strongly in support of a final curatorship of the entities.

An attorney, Mr Henk Strijdom, was appointed as a third curator to the business of the said entities.

As investor claims will have to be met from the proceeds of assets into which their investments have been placed, the curators have been authorised to dispose of the property of the affected entities with a view to repaying those investments. In exercising this authority, the curators have to comply with certain conditions, including obtaining the approval of the FSB.

The curators have been ordered to file a further report to the court by not later than 30 October 2009 in which they will deal with the status of the curatorship and progress made with the disposal of assets at that date. The Registrar will thereafter place this report before the court for consideration as to how the matter should be dealt with further. An application brought by Dynamic Wealth Stockbrokers (Pty) Ltd to place CMM into liquidation was postponed until the next hearing of the matter.

Media releases will be made as may be necessary between now and the date of the curators’ further report to the court.