The massive Fidentia auction continues
It has been some time since we last reported on the Fidentia scandal. At present, the attention has shifted from Brown and Maddock who were arrested on various charges of fraud and theft, to the curators and their quest to replenish the Fidentia coffers.
The first victory in this regard occurred on Wednesday, 16 May 2007, when Danisa Baloyi repaid a loan of nearly R8 million to the curators. The interest fee loan had been granted to Baloyi during her reign as a Fidentia director. She was controversially also a trustee of the Living Hands Trust at the time.
300 attend Fidentia auction
The curators are still hard at work unravelling Fidentia's complex financial affairs. they maintain that the final amount of 'missing' assets will be in the region of R700 million. At present, every effort is being made to trace assets and convert these assets into cash to assist in making the monthly payments to the widows and orphans who are beneficiaries of the Living Hands Trust.
An auction was held on Saturday to sell an assortment of assets owned by Fidentia Holdings. Unconfirmed reports estimate an attendance of some 300 interested individuals. The most interest at the auction was raised by the sale of two Nissan 350Z racing cars which fetched R280, 000 and R200, 000 respectively. Both vehicles were reportedly snapped up by the same motoring enthusiast. The suggested retail price of a new Nissan 350Z is in the region of R415, 000.
Apart from the two sport cars, the auction also disposed of a number of other vehicles, office equipment, printing equipment and gym equipment. Estimates put the total raised by the auction at close to R5 million.
Curators attach property held in Brown family trust
A mere two days after the auction, the curators obtained an order from Cape High Court Judge Daniel Dlodlo to attach a property held in the Brown family trust. The property was used as the base for Facets, a ladies lifestyle centre started by Brown's wife.
Despite the property being registered in his personal trust, Brown continued to represent it as an asset of the Fidentia group. Co-curator Dines Gihwala said "in the particular circumstances of this matter, there was a clear conflict of interest between Brown in relation to the trust and Brown as director in relation to the fiduciary duty he owed to the companies within the Fidentia Group."
In terms of the order, the curators can deal with the property as they see fit. The most likely outcome will see the property sold at auction to offset missing Fidentia assets and to provide much needed cash flow. Brown reportedly paid R24.5 million for the property which is located in Cape Town's Century City.
Justice plays a long end-game
Since their arrest, Brown and Maddock have been released on bail of R1 million each. They face a number of fraud and theft charges. At present, it appears the legal proceedings will draw out for years- in much the same way as cases against other 'high profile' accused in recent times.
It seems high net worth individuals have little difficulty in tying up their cases for years on end. In contrast, an impoverished criminal can often languish in jail for a year or two before a trial date is even set. Makes one wonder exactly what greases the wheels of justice!
Editor's thoughts:
Another case which caught our attention recently, is the highly publicised Oasis Asset Management versus Judge Desai debacle. Oasis recently announced they would withdraw proceedings against Desai, because it would simply take too long to obtain any meaningful result. Oasis also said that in the event of a ruling against Desai, he could tie the case up for five more years on appeal. Should we revisit our justice system to ensure speedier judicial resolution? Send your comments to [email protected].
