The Institute of Chartered Accountants of Namibia (ICAN) has confirmed that it is looking into the role accountant Hanjo Schlabitz played in Wealth Management Solutions (WMS), a firm that lost N$250 million in investments.
WMS is a financial advisory firm that entered liquidation in April this year, a month after it lost millions in overseas investments.
The Namibian reported last week that Schlabitz admitted to using money from local investors to pay out clients who lost their money in those overseas markets. According to the liquidator in charge, losses may run up to N$350 million.
The ICAN secretariat told its members yesterday that it was aware of the media reports.
“ICAN is acting on the matter and the prescribed disciplinary processes. As these proceedings are subject to due process and principles of procedural fairness, the institute is unable to comment further on the merits of the matter while the process is underway,” the secretariat says.
The institute says it takes professional standards and integrity very seriously.
“We remain committed to protecting the integrity and reputation of the profession and will continue to discharge our statutory and regulatory responsibilities in accordance with our governing constitution and by-laws,” the secretariat says.
Schlabitz has been a registered member of ICAN since 2006, according to ICAN’s public records.
A client of WMS, who declined to be named, lodged a letter of complaint against Schlabitz on 25 June, a month after The Namibian first reported on the liquidation.
“I would like to draw to your attention that one of your professional members, Mr H Schlabitz, whose company is currently under liquidation, did not act professionally in his duties as a financial broker nor chartered accountant,” the letter, which has been seen by The Namibian, reads.
Schlabitz had invested client funds into overseas trading platforms that trade in commodity prices and currencies. According to the letter, Schlabitz was aware that those funds were at risk, but did not inform his clients and continued to sell the product.
The letter also alleges that he moved funds between different investment vehicles without the clients’ consent.
“He failed to advise his clients in time on one investment that was at serious risk and in a second instance, moved funds without client authorisation and used those funds to pay new/other/unrelated clients and/or reinvested clients funds offshore without their consent,” the letter says.
The letter of complaint is also addressed to the Public Accountants and Auditors Board (Paab). The Namibian could not verify Schlabitz’ registration as a member of Paab.
Paab had not responded to questions about its disciplinary proceedings by the time of publishing.
Schlabitz did not respond to phone calls or to questions sent to him.
