Charities may lose donations made by Rees

DONATIONS made to charities by Dean Rees, who is accused of luring investors into Barry Tannenbaum’s alleged Ponzi scheme, may have to be returned, putting a Johannesburg school for blind and disabled children in jeopardy.

‘If we find, eventually, that whatever monies those charities received were from ill-gotten gains, then investors would require us to go and get the money back – even if it sounds morally repugnant,’ Shirish Kalian, a trustee of Tannenbaum’s South African estate, said.Rees has been accused of recruiting investors for Tannenbaum, the Sydney-based businessman who is being investigated by South African authorities over allegations of operating a Ponzi scheme worth as much as N$2 billion.Late last year, before Rees moved to Switzerland, he donated N$25 000 to the Johannesburg School for Blind, Low Vision and Multiple Disability Children.’It was really kind of him, it helped us to continue,’ said Bronwen Jones, a director of the school. The school is linked to the charity Children of Fire, which arranges reconstructive surgery for young burn victims.Jones said the school and Children of Fire were ‘on the brink’ of collapse.Rees has said that he was ‘duped’ by Tannenbaum, while Tannenbaum has said that some of the allegations against him were ‘drivel.’Trustees of Tannenbaum’s estate would be ‘shot down by investors’ if they did not try to retrieve money that was paid out, whether it was from the personal account of Rees, or out of money linked to the scheme, or that of entities tied to Tannenbaum’s companies, Kalian said.The possibility of the charities being forced to return the money were ‘remote at this stage’ as investigations were still continuing.’We already have 50 files that forensic auditors are busy with, tracing Tannenbaum’s accounts,’ Kalian added.Communicating via his lawyer, Brian Bieybuck, a director at the Johannesburg office of Eversheds, Rees said he made donations totalling at least N$2 million, including a payment to an actress with cancer, a centre for abused women and children in Krugersdorp, and another school in the city.Rees is accused by one investor of earning millions in commissions from the alleged Ponzi scheme, the Sunday Times said earlier this month, citing court papers filed by Rees.His assets included a N$47m house in Switzerland, a watch collection, a N$6m interest in Promac Paints and a N$31m interest in a trust, the Johannesburg-based paper reported on Sunday, citing court papers.Last week Barwa Real Estate, Qatar’s second-largest property developer, said it was continuing its bid to freeze Rees’ assets after a UK court turned down a request.Barwa started court proceedings against Rees in June after the weekly Financial Mail said the Qatari company lost more than US$30 million (N$235m) investing with Tannenbaum and Rees. -Business Report

In an age of information overload, Sunrise is The Namibian’s morning briefing, delivered at 6h00 from Monday to Friday. It offers a curated rundown of the most important stories from the past 24 hours – occasionally with a light, witty touch. It’s an essential way to stay informed. Subscribe and join our newsletter community.

The Namibian uses AI tools to assist with improved quality, accuracy and efficiency, while maintaining editorial oversight and journalistic integrity.