Legal triangle ruling set to be given today

THE High Court is set to decide today whether or not to allow Old Mutual Life Assurance to hold on to more than N$3,2 million belonging to former employer Johan Deysel to compensate a Windhoek pensioner for the more than N$7 million she invested with Great Triangle Investments on his advice.

Great Triangle Investments is the company at the centre of a shady investment by the Offshore Development Company of N$100 million. Yesterday, legal counsel for Old Mutual approached the court to amend the relief it is seeking that it be allowed to execute judgement against the company’s staff pension fund to recoup the money needed to refund Helene Naudé.On Friday, Old Mutual asked Judge Gerhard Maritz to grant an interdict in its favour not to pay out Deysel’s pension money and its accumulated interest until it has instituted action against Deysel for nearly N$8 million.Should Old Mutual fail to do so within 30 days of such an interdict being granted, it will lapse.In his final arguments yesterday, Raymond Heathcote, who represented Old Mutual, said it could be expected that Naudé would eventually hold Old Mutual liable for her losses if she had been given the impression that Great Triangle Investments was affiliated to or resorted under Old Mutual or, alternatively, if Deysel had convinced her that the investment would be “safe”.Arguing in favour of Deysel, Dave Smuts contended that according to the rules governing the pension fund, the employer could only lay claim to the pension if at the time of retirement or ceasing to be a member of the fund, damages to the employer had been established.This he said, had not been the case and Naudé had not taken action against Deysel while he was still in the employ of Old Mutual.Deysel resigned in September, only days before he was expected to face a disciplinary hearing on fraud and other misconduct charges.On Friday, the court grappled with whether Old Mutual could request withholding the pension money, as the company had not taken any action against Deysel, nor had Naudé taken action against Old Mutual for her losses.In affidavits before the court, Deysel acknowledges that he advised Naudé to disinvest N$7 million of her portfolio with Old Mutual in favour of investing with Great Triangle Investments for more favourable returns.She received about N$1,4 million in payments from Great Triangle before the money dried up.Maritz said yesterday that the court was faced with quite a challenge to rule on the matter.He said a number of interesting points had been raised and that he had to make a judgement on a matter which had charted new territory.In attempts to get her money back, Naudé also applied for the sequestration of the personal estate of Great Triangle’s principal director, Philip Fourie.Last Thursday, the Cape Town Provincial High Court granted a provisional liquidation order in her favour.Yesterday, legal counsel for Old Mutual approached the court to amend the relief it is seeking that it be allowed to execute judgement against the company’s staff pension fund to recoup the money needed to refund Helene Naudé.On Friday, Old Mutual asked Judge Gerhard Maritz to grant an interdict in its favour not to pay out Deysel’s pension money and its accumulated interest until it has instituted action against Deysel for nearly N$8 million.Should Old Mutual fail to do so within 30 days of such an interdict being granted, it will lapse.In his final arguments yesterday, Raymond Heathcote, who represented Old Mutual, said it could be expected that Naudé would eventually hold Old Mutual liable for her losses if she had been given the impression that Great Triangle Investments was affiliated to or resorted under Old Mutual or, alternatively, if Deysel had convinced her that the investment would be “safe”.Arguing in favour of Deysel, Dave Smuts contended that according to the rules governing the pension fund, the employer could only lay claim to the pension if at the time of retirement or ceasing to be a member of the fund, damages to the employer had been established.This he said, had not been the case and Naudé had not taken action against Deysel while he was still in the employ of Old Mutual.Deysel resigned in September, only days before he was expected to face a disciplinary hearing on fraud and other misconduct charges.On Friday, the court grappled with whether Old Mutual could request withholding the pension money, as the company had not taken any action against Deysel, nor had Naudé taken action against Old Mutual for her losses.In affidavits before the court, Deysel acknowledges that he advised Naudé to disinvest N$7 million of her portfolio with Old Mutual in favour of investing with Great Triangle Investments for more favourable returns.She received about N$1,4 million in payments from Great Triangle before the money dried up.Maritz said yesterday that the court was faced with quite a challenge to rule on the matter.He said a number of interesting points had been raised and that he had to make a judgement on a matter which had charted new territory.In attempts to get her money back, Naudé also applied for the sequestration of the personal estate of Great Triangle’s principal director, Philip Fourie.Last Thursday, the Cape Town Provincial High Court granted a provisional liquidation order in her favour.