How to blow half a million in a month

IN a frenzied orgy of spending, the 24-year-old former Chief Executive Officer and Director of Namangol Investments, Heinrich Helm, blew half a million dollars in five weeks, paid to him by the company’s owner Nico Josea, the High Court heard yesterday.

As beneficiaries of generous loans and donations from Josea were called to tell the court exactly how they had spent this money, so a tale of brotherly love, trust and sharing within the Voice of God Tabernacle, unfolded. Helm told the court that Josea appointed him, at the tender age of 22, as the director and CEO of Namangol Investments on August 19 2003.But by the end of July 2004, he had resigned because Namangol Investments was not making business, and he had never received a salary.He said he received the N$500 000 as a “settlement amount” for terminating his directorship and having worked for no salary.Namangol Investments received N$29,5 million from Avid Investments on January 28, only two days after N$30 million was transferred from the Social Security Commission into Avid’s account.On March 15, Josea wrote Helm a cheque for N$500 000 – this was a day after a Johannesburg law firm had transferred N$14,8 million into Josea’s personal account, which he has claimed resulted from a court settlement.At that time, Helm had a N$15 000 overdraft at the bank, both he and his wife’s car payments were in arrears and so too were the bond repayments on their two houses.But, without settling any of these debts and with N$500 000 to spend, Helm found himself back in the red by the end of April.Josea, Helm claimed, gave him the money after he approached him for a loan.Helm explained that he and Josea were “brothers” through their close relationship in the Voice of God Tabernacle, and Josea would often bail out those of his friends who were struggling financially.Later it would transpire that others who received large sums of money from Josea were also connected through their church.Helm said he never knew the money he was getting from Josea was from money secured as a part of a deal between Namangol and Avid.He maintained that he had only learned of the Avid investment scandal and his involvement from media reports.Helm told the court that he was a South African national married to a Namibian citizen and had gained experience of insurance and investment from his father, who was a broker in South Africa.This was after SSC legal counsel Andrew Corbett had persistently asked how much experience Helm could have acquired at such a young age to run an investment company.He maintained that through contacts of his father, he had been “talking” to South African companies such as the Sasfin Policy Group, but was unsuccessful.Helm said he had decided to leave Namangol Investments because he was not earning any money and had a family to provide for.”We never did one investment while I was employed there,” he testified.BROTHERLY ASSISTANCE As a well-off businessman and a Christian who believed in helping those in need, Helm said it was not uncommon for Josea to be approached for financial assistance by fellow “brothers”.At first he told the court that the biggest loan he had received from Josea was N$20 000 – which he said he received in February.”If I asked him to help me, he would help me,” said Helm of Josea’s generosity, recalling that he had on occasion previously borrowed amounts ranging from N$2 000 to N$5 000 from Josea.He said while no repayment schedule was agreed upon, there was always a tacit understanding that he would repay Josea when he was in a position to do so.”Mr Josea’s got other businesses, that’s why you would think he’s a prosperous businessman.You would think N$20 000 is not a problem for him.”Only when the court questioned him on the N$500 000 he received from Josea, did he admit to receiving a larger amount from Josea.He maintained that after “working very hard” for Namangol and “not getting anywhere”, Josea decided to write him the cheque for half a million dollars as a “settlement amount” for terminating his directorship.But Helm battled to account for how he spent all the money so quickly.He recalled spending N$50 000 of the N$500 000 to pay his church tithes which were in arrears, a N$20 000 payment towards his home loan and two months’ advance instalments for the amount of N$10 000 on his brand new BMW 1 series car.’SOMETHING’S MISSING’ The largest amount he could account for was the N$50 000 he spent buying treasury bills, and a N$14 000 repayment on a personal loan.And so amounts of N$5 000 and N$10 000 were regularly withdrawn from the account to be randomly spent by him and his wife, but also to help out needy youths from his church.”There is some big amount missing,” Judge Raymond Heathcote pressed, warning that he would not hesitate to imprison Helm, and those who scheduled to testify after him, to “refresh their memories” as to how they spent the money Josea gave them.While drawing a blank on much of his expenditure, Helm insisted that he had not bought any assets with the N$500 000.He said he bought his BMW, which cost N$228 000, with his earnings as a broker with Channel Life where at the time of the purchase in February, he was making as much as N$35 000 before deductions.Since then, he maintained, things had gone downhill as many of the policies he had sold had lapsed, and he was being penalised.He said he planned to resign from the company soon.Helm further told the court that he had to sell his Khomasdal house at a loss and still owed the bank for it.He said he also planned to sell his house in Acacia Park, where he now lives, to avoid repossession, and had found a buyer just last week.He said the haste to sell his houses was not related to the Avid investigation, and it was merely because he couldn’t afford the repayments.He was also struggling to pay his wife’s vehicle, the court heard.Helm said he had already applied for alternative employment and was even looking into buying a hotdog stand to employ himself once he left Channel Life.Helm was made to return to the court after a short recess, to furnish the court with bank statements as well as statements of his house and car loans.It appeared that he withdrew most of the money as cash to lend to fellow “brethren”, including John Smith and Peter Boonzaaier – called to testify after him – having also received money from Josea.Helm also gave money to his family and bought furniture to the value of N$20 000.Helm told the court that Josea appointed him, at the tender age of 22, as the director and CEO of Namangol Investments on August 19 2003. But by the end of July 2004, he had resigned because Namangol Investments was not making business, and he had never received a salary.He said he received the N$500 000 as a “settlement amount” for terminating his directorship and having worked for no salary.Namangol Investments received N$29,5 million from Avid Investments on January 28, only two days after N$30 million was transferred from the Social Security Commission into Avid’s account.On March 15, Josea wrote Helm a cheque for N$500 000 – this was a day after a Johannesburg law firm had transferred N$14,8 million into Josea’s personal account, which he has claimed resulted from a court settlement.At that time, Helm had a N$15 000 overdraft at the bank, both he and his wife’s car payments were in arrears and so too were the bond repayments on their two houses.But, without settling any of these debts and with N$500 000 to spend, Helm found himself back in the red by the end of April.Josea, Helm claimed, gave him the money after he approached him for a loan.Helm explained that he and Josea were “brothers” through their close relationship in the Voice of God Tabernacle, and Josea would often bail out those of his friends who were struggling financially.Later it would transpire that others who received large sums of money from Josea were also connected through their church.Helm said he never knew the money he was getting from Josea was from money secured as a part of a deal between Namangol and Avid.He maintained that he had only learned of the Avid investment scandal and his involvement from media reports.Helm told the court that he was a South African national married to a Namibian citizen and had gained experience of insurance and investment from his father, who was a broker in South Africa.This was after SSC legal counsel Andrew Corbett had persistently asked how much experience Helm could have acquired at such a young age to run an investment company.He maintained that through contacts of his father, he had been “talking” to South African companies such as the Sasfin Policy Group, but was unsuccessful.Helm said he had decided to leave Namangol Investments because he was not earning any money and had a family to provide for.”We never did one investment while I was employed there,” he testified.BROTHERLY ASSISTANCE As a well-off businessman and a Christian who believed in helping those in need, Helm said it was not uncommon for Josea to be approached for financial assistance by fellow “brothers”.At first he told the court that the biggest loan he had received from Josea was N$20 000 – which he said he received in February.”If I asked him to help me, he would help me,” said Helm of Josea’s generosity, recalling that he had on occasion previously borrowed amounts ranging from N$2 000 to N$5 000 from Josea.He said while no repayment schedule was agreed upon, there was always a tacit understanding that he would repay Josea when he was in a position to do so.”Mr Josea’s got other businesses, that’s why you would think he’s a prosperous businessman.You would think N$20 000 is not a problem for him.”Only when the court questioned him on the N$500 000 he received from Josea, did he admit to receiving a larger amount from Josea.He maintained that after “working very hard” for Namangol and “not getting anywhere”, Josea decided to write him the cheque for half a million dollars as a “settlement amount” for terminating his directorship.But Helm battled to account for how he spent all the money so quickly.He recalled spending N$50 000 of the N$500 000 to pay his church tithes which were in arrears, a N$20 000 payment towards his home loan and two months’ advance instalments for the amount of N$10 000 on his brand new BMW 1 series car.’SOMETHING’S MISSING’ The largest amount he could account for was the N$50 000 he spent buying treasury bills, and a N$14 000 repayment on a personal loan.And so amounts of N$5 000 and N$10 000 were regularly withdrawn from the account to be randomly spent by him and his wife, but also to help out needy youths from his church.”There is some big amount missing,” Judge Raymond Heathcote pressed, warning that he would not hesitate to imprison Helm, and those who scheduled to testify after him, to “refresh their memories” as to how they spent the money Josea gave them.While drawing a blank on much of his expenditure, Helm insisted that he had not bought any assets with the N$500 000.He said he bought his BMW, which cost N$228 000, with his earnings as a broker with Channel Life where at the time of the purchase in February, he was making as much as N$35 000 before deductions.Since then, he maintained, things had gone downhill as many of the policies he had sold had lapsed, and he was being penalised.He said he planned to resign from the company soon.Helm further told the court that he had to sell his Khomasdal house at a loss and still owed the bank for it.He said he also planned to sell his house in Acacia Park, where he now lives, to avoid repossession, and had found a buyer just last week.He said the haste to sell his houses was not related to the Avid investigation, and it was merely because he couldn’t afford the repayments.He was also struggling to pay his wife’s vehicle, the court heard.Helm said he had already applied for alternative employment and was even looking into buying a hotdog stand to employ himself once he left Channel Life.Helm was made to return to the court after a short recess, to furnish the court with bank statements as well as statements of his house and car loans.It appeared that he withdrew most of the money as cash to lend to fellow “brethren”, including John Smith and Peter Boonzaaier – called to testify after him – having also received money from Josea.Helm also gave money to his family and bought furniture to the value of N$20 000.