Josea says he wants to help track down SSC’s money

ASSET management company boss Nico Josea is eager to help recover the N$30 million investment that the Social Security Commission lost through his company, two of his lawyers have told the Windhoek Magistrate’s Court.

Josea wants to help get the SSC’s lost investment back, but his efforts are being frustrated because he has been held in custody for close to three months, two of his lawyers, André Louw and Derick Greyling, told Magistrate Sarel Jacobs on Friday, when the Magistrate started hearing a bail application from Josea. The two lawyers, who adopted the unusual tactic of testifying in their own client’s case, were the first witnesses to give evidence on Josea’s behalf in the bail hearing.Josea was back in court on Monday this week, and the bail application is set to continue on Monday next week.Josea has been held in custody since he was arrested on charges of fraud and theft on July 26.His arrest took place after a High Court inquiry into the investment that the SSC placed with an inexperienced asset management company, Avid Investment Corporation, heard claims that half of the SSC’s N$30 million had eventually landed in a bank account belonging to Josea, and that he had spent all that money within a matter of weeks.The High Court inquiry had heard that Avid transferred N$29,5 million of the SSC’s money to an account of Josea’s asset management company, Namangol Investments, after Avid had received the money in late January.Josea in turn had N$20 million of that money transferred to an account of a Johannesburg-based financial trader, Alan Rosenberg.A little over a month later, Rosenberg paid N$15 million back to Josea, the High Court was also told.Louw told the Magistrate that he has had lengthy discussions with the SSC’s lawyers and the provisional liquidator who has been put in charge of both Avid and Namangol Investments after these companies were placed in provisional liquidation by the High Court.He was trying to see “if we could take hands with the State and how we could assist the State”, but has had all his efforts to assist with the efforts to trace and recover the SSC’s money rebuffed, Louw told the court.”In the interests of justice, we can help to take action, we can help with everything, but nobody wants to help us,” Louw stated.Under cross-examination from Public Prosecutor Marilize Willemse, who asked Louw if he would agree that the N$29,5 million that Avid had paid to Namangol Investments, supposedly to be invested further on Avid’s behalf, was the amount of money that has gone missing, Louw repeated a line of reasoning that Josea, too, had first taken during the High Court inquiry.The prosecution would first have to prove that the money that Namangol Investments had received from Avid, had emanated from the SSC, and it would also have to prove that the money is due and payable – which it is not, Louw said.According to the SSC, it agreed with Avid to invest the N$30 million for a four-month period.By late May, when the investment had to be repaid, Avid could not return the money, leading to the legal steps that the SSC started taking against Avid in the first half of July.At the High Court inquiry, Josea testified that he had made it clear to the late Chief Executive Officer of Avid, Lazarus Kandara, that an investment would run over a period of at least a year and a day, and it was on those terms that he sent money to Rosenberg to be invested.He also related that after Rosenberg had failed to give him a written investment agreement, he started litigation against Rosenberg in South Africa.Rosenberg settled this by agreeing to pay Namangol Investments N$15 million – this was the money that landed in Josea’s bank account – as well as an additional N$15 million in three equal instalments of N$5 million each.In addition to that, Josea claimed, Rosenberg agreed to let Namangol Investments get half the proceeds from a huge international financial market investment that he was involved in at that stage.That investment was set to earn Namangol Investments some US$17,9 million (about N$117 million) when it matured by March next year, Josea claimed.Rosenberg has in the meantime admitted that this last investment that he touted to Josea actually never got off the ground.Greyling, Josea’s Johannesburg-based attorney, told Magistrate Jacobs that he did not know and could not say if that investment ever materialised.He added, however, that the maturity date of that investment would be reached only in March next year, and that according to an agreement between Josea and Rosenberg – and this was what Josea believed to be true – there would be more than enough money to repay Avid once the investment matures.In the meantime, though, with Rosenberg having failed to pay the second promised N$15 million, he had “firm instructions” from Josea to pursue legal steps against Josea, Greyling told the court.It has, however, been nearly impossible to take instructions from Josea while he is in custody, Greyling added.This applies not only to the steps that Josea wants to take against Rosenberg, but also to the defence that Josea wants to put up against what Greyling termed “probably two of the most far-reaching court applications that can be brought against anybody”.These are a case in which Avid’s provisional liquidator is asking for Namangol Investments’ liquidation and another for Josea’s personal estate to be sequestrated, Greyling said.The two lawyers, who adopted the unusual tactic of testifying in their own client’s case, were the first witnesses to give evidence on Josea’s behalf in the bail hearing.Josea was back in court on Monday this week, and the bail application is set to continue on Monday next week.Josea has been held in custody since he was arrested on charges of fraud and theft on July 26.His arrest took place after a High Court inquiry into the investment that the SSC placed with an inexperienced asset management company, Avid Investment Corporation, heard claims that half of the SSC’s N$30 million had eventually landed in a bank account belonging to Josea, and that he had spent all that money within a matter of weeks.The High Court inquiry had heard that Avid transferred N$29,5 million of the SSC’s money to an account of Josea’s asset management company, Namangol Investments, after Avid had received the money in late January.Josea in turn had N$20 million of that money transferred to an account of a Johannesburg-based financial trader, Alan Rosenberg.A little over a month later, Rosenberg paid N$15 million back to Josea, the High Court was also told.Louw told the Magistrate that he has had lengthy discussions with the SSC’s lawyers and the provisional liquidator who has been put in charge of both Avid and Namangol Investments after these companies were placed in provisional liquidation by the High Court.He was trying to see “if we could take hands with the State and how we could assist the State”, but has had all his efforts to assist with the efforts to trace and recover the SSC’s money rebuffed, Louw told the court.”In the interests of justice, we can help to take action, we can help with everything, but nobody wants to help us,” Louw stated.Under cross-examination from Public Prosecutor Marilize Willemse, who asked Louw if he would agree that the N$29,5 million that Avid had paid to Namangol Investments, supposedly to be invested further on Avid’s behalf, was the amount of money that has gone missing, Louw repeated a line of reasoning that Josea, too, had first taken during the High Court inquiry.The prosecution would first have to prove that the money that Namangol Investments had received from Avid, had emanated from the SSC, and it would also have to prove that the money is due and payable – which it is not, Louw said.According to the SSC, it agreed with Avid to invest the N$30 million for a four-month period.By late May, when the investment had to be repaid, Avid could not return the money, leading to the legal steps that the SSC started taking against Avid in the first half of July.At the High Court inquiry, Josea testified that he had made it clear to the late
Chief Executive Officer of Avid, Lazarus Kandara, that an investment would run over a period of at least a year and a day, and it was on those terms that he sent money to Rosenberg to be invested.He also related that after Rosenberg had failed to give him a written investment agreement, he started litigation against Rosenberg in South Africa.Rosenberg settled this by agreeing to pay Namangol Investments N$15 million – this was the money that landed in Josea’s bank account – as well as an additional N$15 million in three equal instalments of N$5 million each.In addition to that, Josea claimed, Rosenberg agreed to let Namangol Investments get half the proceeds from a huge international financial market investment that he was involved in at that stage.That investment was set to earn Namangol Investments some US$17,9 million (about N$117 million) when it matured by March next year, Josea claimed.Rosenberg has in the meantime admitted that this last investment that he touted to Josea actually never got off the ground.Greyling, Josea’s Johannesburg-based attorney, told Magistrate Jacobs that he did not know and could not say if that investment ever materialised.He added, however, that the maturity date of that investment would be reached only in March next year, and that according to an agreement between Josea and Rosenberg – and this was what Josea believed to be true – there would be more than enough money to repay Avid once the investment matures.In the meantime, though, with Rosenberg having failed to pay the second promised N$15 million, he had “firm instructions” from Josea to pursue legal steps against Josea, Greyling told the court.It has, however, been nearly impossible to take instructions from Josea while he is in custody, Greyling added.This applies not only to the steps that Josea wants to take against Rosenberg, but also to the defence that Josea wants to put up against what Greyling termed “probably two of the most far-reaching court applications that can be brought against anybody”.These are a case in which Avid’s provisional liquidator is asking for Namangol Investments’ liquidation and another for Josea’s personal estate to be sequestrated, Greyling said.