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Namfisa probes Prowealth

Namfisa probes Prowealth

NAMFISA is investigating Prowealth Asset Managers, whose CEO, Riaan Potgieter, committed suicide in December.

‘We are investigating allegations made by clients who invested through an asset management company, Prowealth Asset Managers, of which Riaan Potgieter was the portfolio manager,’ Ebben Kalondo of the Namibia Financial Supervisory Authority’s (Namfisa) corporate communications department said yesterday.
‘The investigation was triggered by worried clients after the death of the principal of Prowealth, Riaan Potgieter,’ she said.
The Namibian has learned that some of the asset management company’s clients may have lost as much as N$3,5 million.
However, Namfisa was unable to confirm this or shed light on how many clients may have been affected.
‘We have had a lot of queries from Prowealth Asset Managers’ clients as well as complaints, yes,’ Kalondo said.
‘We are not in a position to quantify the portfolio at this stage as the investigation is not yet concluded which will give us a clear picture of the facts,’ she added.
Concern about investments with the company surfaced after Potgieter committed suicide in early December last year, dying of a single gunshot wound.
Potgieter (39) was the founder and CEO of the Prowealth group of companies and leaves behind a wife and two children aged 11 and 14.
Since then lawyer Soleil Prollius, who is associated with Metcalfe Legal Practitioners, has been appointed executor of Potgieter’s estate.
She is also charged with optimising the remaining Prowealth businesses, according to the group’s marketing strategist, Rudi Erasmus.
Prollius said this week that she cannot reveal how much money is involved or how many Prowealth clients may have been affected.
‘I can’t reveal that information now. That is why we are going through that process.’
She explained that all Potgieter’s clients are being contacted and assisted.
‘We have appointed professional people to help us with that and we are still talking to the clients. That is what the clients also want to know,’ she said.
‘Since the incident happened during the holidays, auditors and valuators have only become available this week. As soon as we know clearer we can disclose that information. We are still investigating.’
Whether claims can be made against Potgieter’s personal estate for money lost by Prowealth Asset Managers, of which Potgieter was the only asset manager, is also not established yet, Prollius said.
‘We are still looking at that in light of the fact that he was the shareholding director, whether he could be responsible in a personal capacity or not,’ she said.
Meanwhile, Prollius has announced that both Prowealth Asset Managers and Prowealth Life will be dissolved.
Nine people stand to lose their jobs through this process, she explained.
The Prowealth group of companies also includes Prowealth Trust and Estate Company, Prowealth Short Term Insurance, Prowealth Commercial Solutions, Prowealth Chartered Accountants, Prolink Namibia, Prowealth Property CC trading as SEEF in Namibia and the Engen President’s Crossing service station in Klein Windhoek.
‘Prowealth is a private company with various focal areas, and it is within their rights to reorganise themselves,’ Kalondo said.
‘Our priority is to ensure that those entities registered with Namfisa are financially sound and operate within the law.’
Prowealth Asset Managers has been a leading company in the Namibian asset management market. In 2005 it teamed up with Plexus Asset Management from South Africa to offer clients three new multi-manager fund options.
According to Plexus its agreement with Prowealth means it is responsible for the management of investments in these wrap funds and Prowealth is responsible for the client relationships, financial advice, marketing and promotion of the funds in Namibia. These funds are administered by the Sanlam Personal Portfolios administration company, Plexus said.
‘As of today, we remain the investment manager appointed by various Prowealth clients to manage their investments in these three wrap funds. Since the contractual relationship that exists between Prowealth clients and Plexus is between two legal persons, our responsibility to continue managing these assets surpasses the tenure of any natural person(s) employed by either company,’ Plexus deputy MD Paul Stewart said this week.
‘Since our primary responsibility is to the investors in the Prowealth fund range, we will continue to manage Prowealth client money to us for as long as our asset management agreement remains in place and/or these clients remain invested in the Prowealth CPIX Focus Fund range.’

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