Navachab’s N$10m investment ‘did not follow procedures’

AS the curtain was coming down on the High Court inquiry into Avid Investment Corporation yesterday, gold-mining giant Anglo-Gold Ashanti approached the court to reveal more about Navachab Mine’s N$10 million investment with the now defunct asset management company and its former General Manager Fritz Jacobs’s involvement in the transaction.

In an affidavit by AngloGold Ashanti’s General Manager Peter Geleta and placed on the record by the Social Security Commission’s legal counsel Andrew Corbett, the company said its remarks came in the wake of claims made in testimony at the inquiry that “commissions” paid to Avid’s directors were in respect of the Navachab deal and not from the SSC’s N$30 million investment. The company said at the time of Jacobs’s abrupt resignation, it found it “unnecessary” to disclose any information regarding the investment and the circumstances that may have led to Jacob’s leaving.The board, chaired by legal practitioner Hosea Angula, had resolved to do otherwise at its meeting last week.According to information put before the court yesterday, the company said it became aware of the N$10 million investment by Navachab with Avid last December and immediately instituted an internal investigation into the manner, when it found that Jacobs had authorised the investment outside company procedures.With Jacobs having in the past declined to comment on his sudden departure from Navachab, AngloGold yesterday revealed that he had resigned four days after being informed on March 11 this year that the company planned to hold a disciplinary inquiry into the investment irregularities.Geleta said in his affidavit that the company had found that its procedures for investments had not been followed, and that the investment had been made without the knowledge of the company’s principals or its board of directors.During his testimony two weeks ago, the late Lazarus Kandara told the court that the “commissions” his wife was instructed to pay out to directors were in respect of the Navachab investment and not the SSC’s money.Through a written inquiry, Anglo-Gold says Jacobs denied “that he had ever had any relationship or knowledge of Avid Investments or Mr Kandara, the Chief Executive Officer of Avid Investments”.An internal investigation established that Jacobs had been a director of Avid until mid-June 2004, it said.”Steps were immediately initiated to retrieve the investment,” said the affidavit read before the court.But before it could initiate any steps to retrieve the money and without having made any direct contact with Avid, an amount of N$5,27 million was repaid on December 28, 2004 and the same amount three days later.Navachab received interest of 13,2 per cent on that investment.From its investigations, the company said it could neither establish the terms and conditions under which Jacobs authorised the investment, nor whether any “commissions” were paid to anybody as result of the relationship with Avid.”However, based on the aforementioned facts, especially the time period which passed between the company’s [Navachab] investment and the transfer of the SSC money to Avid Investments, it would be fair to say that the interest earned on the company’s investment could not have been earned from SSC money,” said Geleta.The company said at the time of Jacobs’s abrupt resignation, it found it “unnecessary” to disclose any information regarding the investment and the circumstances that may have led to Jacob’s leaving.The board, chaired by legal practitioner Hosea Angula, had resolved to do otherwise at its meeting last week.According to information put before the court yesterday, the company said it became aware of the N$10 million investment by Navachab with Avid last December and immediately instituted an internal investigation into the manner, when it found that Jacobs had authorised the investment outside company procedures.With Jacobs having in the past declined to comment on his sudden departure from Navachab, AngloGold yesterday revealed that he had resigned four days after being informed on March 11 this year that the company planned to hold a disciplinary inquiry into the investment irregularities.Geleta said in his affidavit that the company had found that its procedures for investments had not been followed, and that the investment had been made without the knowledge of the company’s principals or its board of directors.During his testimony two weeks ago, the late Lazarus Kandara told the court that the “commissions” his wife was instructed to pay out to directors were in respect of the Navachab investment and not the SSC’s money.Through a written inquiry, Anglo-Gold says Jacobs denied “that he had ever had any relationship or knowledge of Avid Investments or Mr Kandara, the Chief Executive Officer of Avid Investments”.An internal investigation established that Jacobs had been a director of Avid until mid-June 2004, it said.”Steps were immediately initiated to retrieve the investment,” said the affidavit read before the court.But before it could initiate any steps to retrieve the money and without having made any direct contact with Avid, an amount of N$5,27 million was repaid on December 28, 2004 and the same amount three days later.Navachab received interest of 13,2 per cent on that investment.From its investigations, the company said it could neither establish the terms and conditions under which Jacobs authorised the investment, nor whether any “commissions” were paid to anybody as result of the relationship with Avid.”However, based on the aforementioned facts, especially the time period which passed between the company’s [Navachab] investment and the transfer of the SSC money to Avid Investments, it would be fair to say that the interest earned on the company’s investment could not have been earned from SSC money,” said Geleta.