I'm the man to recover SSC's N$30m: Josea

By: * WERNER MENGES

THE only man who at this stage faces criminal charges over the investment deal that has left the Social Security Commission N$30 million out of pocket told the Windhoek Magistrate's Court yesterday that he is the only person who can help the State recover the SSC's money.

If he is released on bail, he will pursue the person to whom the

SSC's money was sent to be invested in order to recover the funds

for the SSC, Nico Josea, the Chief Executive Officer of asset

management company Namangol Investments, told Magistrate Sarel

Jacobs.

The man in his sights is Alan Rosenberg, a financial trader in

Johannesburg who received N$20 million of the SSC's money from

Josea in late January.

 

Josea, who was arrested on charges of fraud and theft on July

26, is set to continue testifying in support of his bail

application today.

 

In testimony that his lawyer, André Louw, presented to

the court yesterday, Josea said that the late Lazarus Kandara, the

Chief Executive Officer of another asset management company, Avid

Investment Corporation, involved Namangol in the investment of the

SSC's money in late January.

 

At the time, the SSC had given N$30 million to Avid to be

invested on its behalf for a four-month period.

 

According to Josea, though, he had told Kandara that the sort of

investments that he was engaged in were for a minimum period of a

year and a day - meaning that the SSC investment channelled through

Namangol Investments would be repaid only by the first week of

March next year.

 

Kandara transferred N$29,5 million to an account of Namangol

Investments in late January, Josea said.

 

Kandara also instructed him to transfer N$20 million of that

money to Rosenberg, who had to invest it, and he carried out that

instruction, Josea said.

 

He dealt with Kandara and Avid, but never had any investment

dealings with the SSC itself.

 

As a result he never defrauded the SSC or stole any money from

it, Josea told the court.

 

He testified that after Namangol had received N$29,5 million

from Avid, he also transferred N$6,3 million to an account in South

Africa on Kandara's instructions.

 

That account was also to be used to invest that money.

 

In addition to those amounts, said Josea, he gave Kandara

N$3,276 million at Kandara's own request from early January this

year until June 1.

 

Kandara - or his estate, after his death on August 24 - still

owes him N$76 000, Josea told the court.

 

After the N$20 million had been transferred to Rosenberg, a

dispute arose between him and the trader because Rosenberg had

failed to provide him with a written investment agreement and a

guarantee for the investment that he was supposed to do, Josea

said.

 

To settle that dispute, Rosenberg agreed to pay N$15 million to

Namangol Investments, which was to be followed by a further N$15

million, made up of three later instalments of N$5 million each,

Josea related to the court in a repeat of an explanation that he

gave the High Court during a Companies Act inquiry into the

financial collapse of Avid.

 

In addition to those amounts, he said, Rosenberg agreed that

Namangol Investments would be receiving half of a US$38,9 million

(about N$257 million) investment by Rosenberg that was set to

mature in early March 2006.

 

Rosenberg has, however, not kept his side of their agreement,

since he has not paid the second N$15 million to Namangol

Investments, and two promissory notes for US$6 million that

Rosenberg presented to Josea to make up for his failure to pay that

N$15 million have been dishonoured by a bank where they were

presented for payment, Josea said.

 

Because of this, he said, he plans to pursue legal action - both

civil and criminal - against Rosenberg if he is released on bail,

Josea said.

 

After Kandara's death, "I'm the only one at this point in time

who can assist the State; no-one else can," Josea told the

Magistrate.

 

Kandara is alleged to have shot himself in front of the Windhoek

Police Station a few hours after he had been arrested on a fraud

charge in connection with his role in the SSC-Avid transaction.

 

The State has been trying to recover the SSC's money from him,

Josea, alone, but he will help get it from others involved in the

investment, Josea said.

 

He told the court: "I as Nicolaas Cornelius Josea, whom the

State is holding responsible, I'm the only one who can assist the

State at this stage.

 

I can go after Alan Rosenberg."

 

Yesterday was the second day of Josea's bail application

hearing.

 

The man in his sights is Alan Rosenberg, a financial trader in

Johannesburg who received N$20 million of the SSC's money from

Josea in late January.Josea, who was arrested on charges of fraud

and theft on July 26, is set to continue testifying in support of

his bail application today.In testimony that his lawyer,

André Louw, presented to the court yesterday, Josea said

that the late Lazarus Kandara, the Chief Executive Officer of

another asset management company, Avid Investment Corporation,

involved Namangol in the investment of the SSC's money in late

January.At the time, the SSC had given N$30 million to Avid to be

invested on its behalf for a four-month period. According to Josea,

though, he had told Kandara that the sort of investments that he

was engaged in were for a minimum period of a year and a day -

meaning that the SSC investment channelled through Namangol

Investments would be repaid only by the first week of March next

year.Kandara transferred N$29,5 million to an account of Namangol

Investments in late January, Josea said.Kandara also instructed him

to transfer N$20 million of that money to Rosenberg, who had to

invest it, and he carried out that instruction, Josea said.He dealt

with Kandara and Avid, but never had any investment dealings with

the SSC itself.As a result he never defrauded the SSC or stole any

money from it, Josea told the court.He testified that after

Namangol had received N$29,5 million from Avid, he also transferred

N$6,3 million to an account in South Africa on Kandara's

instructions.That account was also to be used to invest that

money.In addition to those amounts, said Josea, he gave Kandara

N$3,276 million at Kandara's own request from early January this

year until June 1.Kandara - or his estate, after his death on

August 24 - still owes him N$76 000, Josea told the court.After the

N$20 million had been transferred to Rosenberg, a dispute arose

between him and the trader because Rosenberg had failed to provide

him with a written investment agreement and a guarantee for the

investment that he was supposed to do, Josea said.To settle that

dispute, Rosenberg agreed to pay N$15 million to Namangol

Investments, which was to be followed by a further N$15 million,

made up of three later instalments of N$5 million each, Josea

related to the court in a repeat of an explanation that he gave the

High Court during a Companies Act inquiry into the financial

collapse of Avid.In addition to those amounts, he said, Rosenberg

agreed that Namangol Investments would be receiving half of a

US$38,9 million (about N$257 million) investment by Rosenberg that

was set to mature in early March 2006.Rosenberg has, however, not

kept his side of their agreement, since he has not paid the second

N$15 million to Namangol Investments, and two promissory notes for

US$6 million that Rosenberg presented to Josea to make up for his

failure to pay that N$15 million have been dishonoured by a bank

where they were presented for payment, Josea said.Because of this,

he said, he plans to pursue legal action - both civil and criminal

- against Rosenberg if he is released on bail, Josea said.After

Kandara's death, "I'm the only one at this point in time who can

assist the State; no-one else can," Josea told the

Magistrate.Kandara is alleged to have shot himself in front of the

Windhoek Police Station a few hours after he had been arrested on a

fraud charge in connection with his role in the SSC-Avid

transaction.The State has been trying to recover the SSC's money

from him, Josea, alone, but he will help get it from others

involved in the investment, Josea said.He told the court: "I as

Nicolaas Cornelius Josea, whom the State is holding responsible,

I'm the only one who can assist the State at this stage.I can go

after Alan Rosenberg."Yesterday was the second day of Josea's bail

application hearing.

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