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Kandara’s last testimony

Kandara’s last testimony

IN what would turn out to be the last testimony the High Court inquiry would hear from Avid Investment Corporation Chief Executive Officer Lazarus Kandara, he pledged to sign an acknowledgement of debt for N$500 000 to the Social Security Commission, despite not having assets to cover the amount.

For close to an hour SSC legal counsel Andrew Corbett and Acting Judge Raymond Heathcote tried to get Kandara to admit that the money he spent from this account was part of the SSC’s investment. When the SSC transferred the N$30 million investment to Avid’s account on January 28, N$29,5 million was transferred to Namangol Investments – the other N$500 000 remained in Avid’s account.At that time Avid had a bank balance of just over N$2 600.During a short recess during the afternoon session of the inquiry on Wednesday, merely hours before Kandara would die, he approached Corbett, pledging to return the money.He never acknowledged, however, that the money was part of the SSC’s investment.THE AVID OFFICE As early as January 25, Kandara wrote out a cheque of N$110 000 followed by another of N$111 000 a few days later.Kandara said most of the money was used to set up Avid’s offices and that he had arranged for an overdraft to cover these costs.Later he would tell the court that he had arranged for a loan from the bank.Heathcote slapped contempt of court charges on him for not admitting to spending the SSC’s money for purposes for which it was not intended.After the recess, Heathcote asked on what basis he was making the undertaking to repay the N$500 000 and asked whether he had the means to repay the amount.On questioning from the judge, Kandara eventually admitted to spending the money based on the premise that the returns on the investment placed with South African trader Alan Rosenberg would be so good that it would cover any debts he had incurred with that money.He said, however, that he had no assets that could be liquidated to repay the money.FORENSIC AUDITORS What forensic auditors did however gain from Kandara before his death, were several batches of documents belonging to the Avid Corporation.When liquidators swooped on the corporation’s offices in July, there was barely a scrap of paper in the office.Kandara told the court that the paperwork was shared between the Avid office and one he ran from home.He also showed them his briefcase, in which he said he was carrying much of Avid’s documentation.”Do you keep the whole Avid file in your briefcase?” Corbett asked.During the recess Kandara knelt on the floor of the witness box to sort out his briefcase, and handed the documents over to forensic auditors.But they would never have the opportunity to question him on any of the documents he gave them.When the SSC transferred the N$30 million investment to Avid’s account on January 28, N$29,5 million was transferred to Namangol Investments – the other N$500 000 remained in Avid’s account.At that time Avid had a bank balance of just over N$2 600.During a short recess during the afternoon session of the inquiry on Wednesday, merely hours before Kandara would die, he approached Corbett, pledging to return the money.He never acknowledged, however, that the money was part of the SSC’s investment.THE AVID OFFICE As early as January 25, Kandara wrote out a cheque of N$110 000 followed by another of N$111 000 a few days later.Kandara said most of the money was used to set up Avid’s offices and that he had arranged for an overdraft to cover these costs.Later he would tell the court that he had arranged for a loan from the bank.Heathcote slapped contempt of court charges on him for not admitting to spending the SSC’s money for purposes for which it was not intended.After the recess, Heathcote asked on what basis he was making the undertaking to repay the N$500 000 and asked whether he had the means to repay the amount.On questioning from the judge, Kandara eventually admitted to spending the money based on the premise that the returns on the investment placed with South African trader Alan Rosenberg would be so good that it would cover any debts he had incurred with that money.He said, however, that he had no assets that could be liquidated to repay the money.FORENSIC AUDITORS What forensic auditors did however gain from Kandara before his death, were several batches of documents belonging to the Avid Corporation.When liquidators swooped on the corporation’s offices in July, there was barely a scrap of paper in the office.Kandara told the court that the paperwork was shared between the Avid office and one he ran from home.He also showed them his briefcase, in which he said he was carrying much of Avid’s documentation.”Do you keep the whole Avid file in your briefcase?” Corbett asked.During the recess Kandara knelt on the floor of the witness box to sort out his briefcase, and handed the documents over to forensic auditors.But they would never have the opportunity to question him on any of the documents he gave them.

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