NICO Josea, the arrested boss of one of the asset management companies through whose bank accounts the Social Security Commission’s ill-fated investment of N$30 million flowed on its way out of Namibia, was taken for a huge ride when he paid N$3 million to buy shares in a platinum-mining company in South Africa.
The High Court inquiry into the SSC investment was told yesterday that the shares that Josea bought in his wife’s name at a price of seven South African rand a share, for a total price of N$3 million, in fact cost R4 a share at the time. Lawyer Andrew Corbett, who is representing the SSC and the liquidator in charge of Josea’s provisionally liquidated asset management company, Namangol Investments, did not even make an attempt to sugar-coat his view of the share purchase when he informed the court of the latest information on that issue.Josea “was ripped off completely”, Corbett commented.Josea may have been duped – becoming just one in a succession of role players involved in the SSC’s investment of the N$30 million through a fledgling asset management company, Avid Investment Corporation, to have suffered this fate – but for Johan Lochner, the man who had facilitated the platinum share purchase, ripping off Josea was merely business, Corbett also indicated to the court.Lochner was questioned in Cape Town last week as part of an Insolvency Act inquiry into the financial collapse of Avid and Namangol Investments.According to what he stated at that inquiry, he did not seem to have any problem with the nature of the share deal he had set up for Josea; for him it had only been business, Corbett told the court.”He ripped you off,” Corbett told Josea.He added that he actually had sympathy for Josea on that issue.Josea, who returned to the witness stand to continue giving evidence in Acting Judge Raymond Heathcote’s inquiry into the SSC-Avid investment shortly before Corbett made these remarks, merely shrugged as he was told this.The money with which Josea bought shares in Wesizwe Platinum was transferred to a Cape Town bank account in the name of Real Time Investments in two portions.Bank records show that N$500 000 was transferred from one of Josea’s personal bank accounts to Real Time Investments on February 8.That was 11 days after Avid transferred N$29,5 million of the SSC’s investment money of N$30 million to Josea’s asset management company, Namangol Investments, and five days after Josea had N$1,2 million of the money that come from Avid transferred from his business’s account to his personal bank account.On March 16, Josea transferred a second amount – this time N$2,5 million – from one of his personal bank accounts to Real Time Investments.This transaction took place two days after Josea had received a payment of N$14,89 million into his account from Alan Rosenberg, the purported financial trader who received N$20 million of the SSC’s money from Namangol Investments on January 28.Rosenberg had been supposed to invest that money, but returned three-quarters of it to Josea when – according to Josea – Rosenberg breached the contract that they had for the investment of the funds.The upshot of these movements of money is that it was the SSC’s investment money that ended up being used to buy platinum-mining shares.Josea explained that he and Lochner had met in Josea’s office in Windhoek, and the result of their discussions was that Josea was given an opportunity to buy shares in Wesizwe Platinum at R7 a share, before the company’s shares had been listed for trading on a stock exchange.Lochner never disclosed to Josea that he had actually bought the shares at R4 a share, Josea said in response to a question from Corbett.As far as he understood, Lochner had also paid R7 per share, Josea indicated.If there had been a misrepresentation on Lochner’s part, then the liquidator in charge of Avid and Namangol Investments could however have that transaction cancelled, Acting Judge Heathcote pointed out.Josea’s counsel, Jaco van Rooyen, also told the court on this issue that South African law required a stockbroker to inform a client what commissions the broker would earn on a stock deal.If Lochner had not done so, he could expect to face legal action in South Africa, Van Rooyen said.Corbett added that his team was also investigating the legality of the pre-listing share purchase deal.While the court was told about the buying of Wesizwe Platinum shares, it did not hear anything more about who this company is and what it is doing.According to Wesizwe Platinum’s website, though, it is a company that has been carrying out exploration work in South Africa’s North West Province, where the company has held surface and mineral rights since 2003.It claims to have established from early results of its exploration programme that platinum-bearing reefs are present on the properties over which it has the mineral rights.The company has stated that it will take at least seven years for a platinum mine to come into production, should reserves be proven.Wesizwe Platinum has raised R115 million from private investors in South Africa to conduct the current exploration programme, the company states on its website.Lawyer Andrew Corbett, who is representing the SSC and the liquidator in charge of Josea’s provisionally liquidated asset management company, Namangol Investments, did not even make an attempt to sugar-coat his view of the share purchase when he informed the court of the latest information on that issue.Josea “was ripped off completely”, Corbett commented.Josea may have been duped – becoming just one in a succession of role players involved in the SSC’s investment of the N$30 million through a fledgling asset management company, Avid Investment Corporation, to have suffered this fate – but for Johan Lochner, the man who had facilitated the platinum share purchase, ripping off Josea was merely business, Corbett also indicated to the court.Lochner was questioned in Cape Town last week as part of an Insolvency Act inquiry into the financial collapse of Avid and Namangol Investments.According to what he stated at that inquiry, he did not seem to have any problem with the nature of the share deal he had set up for Josea; for him it had only been business, Corbett told the court.”He ripped you off,” Corbett told Josea.He added that he actually had sympathy for Josea on that issue.Josea, who returned to the witness stand to continue giving evidence in Acting Judge Raymond Heathcote’s inquiry into the SSC-Avid investment shortly before Corbett made these remarks, merely shrugged as he was told this.The money with which Josea bought shares in Wesizwe Platinum was transferred to a Cape Town bank account in the name of Real Time Investments in two portions.Bank records show that N$500 000 was transferred from one of Josea’s personal bank accounts to Real Time Investments on February 8.That was 11 days after Avid transferred N$29,5 million of the SSC’s investment money of N$30 million to Josea’s asset management company, Namangol Investments, and five days after Josea had N$1,2 million of the money that come from Avid transferred from his business’s account to his personal bank account.On March 16, Josea transferred a second amount – this time N$2,5 million – from one of his personal bank accounts to Real Time Investments.This transaction took place two days after Josea had received a payment of N$14,89 million into his account from Alan Rosenberg, the purported financial trader who received N$20 million of the SSC’s money from Namangol Investments on January 28.Rosenberg had been supposed to invest that money, but returned three-quarters of it to Josea when – according to Josea – Rosenberg breached the contract that they had for the investment of the funds.The upshot of these movements of money is that it was the SSC’s investment money that ended up being used to buy platinum-mining shares.Josea explained that he and Lochner had met in Josea’s office in Windhoek, and the result of their discussions was that Josea was given an opportunity to buy shares in Wesizwe Platinum at R7 a share, before the company’s shares had
been listed for trading on a stock exchange.Lochner never disclosed to Josea that he had actually bought the shares at R4 a share, Josea said in response to a question from Corbett.As far as he understood, Lochner had also paid R7 per share, Josea indicated.If there had been a misrepresentation on Lochner’s part, then the liquidator in charge of Avid and Namangol Investments could however have that transaction cancelled, Acting Judge Heathcote pointed out.Josea’s counsel, Jaco van Rooyen, also told the court on this issue that South African law required a stockbroker to inform a client what commissions the broker would earn on a stock deal.If Lochner had not done so, he could expect to face legal action in South Africa, Van Rooyen said.Corbett added that his team was also investigating the legality of the pre-listing share purchase deal.While the court was told about the buying of Wesizwe Platinum shares, it did not hear anything more about who this company is and what it is doing.According to Wesizwe Platinum’s website, though, it is a company that has been carrying out exploration work in South Africa’s North West Province, where the company has held surface and mineral rights since 2003.It claims to have established from early results of its exploration programme that platinum-bearing reefs are present on the properties over which it has the mineral rights.The company has stated that it will take at least seven years for a platinum mine to come into production, should reserves be proven.Wesizwe Platinum has raised R115 million from private investors in South Africa to conduct the current exploration programme, the company states on its website.
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