ODC grasps at straws

THE Offshore Development Company (ODC) appears to have all but given up on ever getting back the N$100 million it recklessly invested in fly-by-night schemes over the last four years. Nevertheless, the ODC, facing legal action to return N$55 million to the Namibia Development Corporation, this week in turn took legal steps to get some of its money back.

The ODC has moved to sequestrate the personal estate of Pieter Boonzaaier, a financial advisor and insurance broker, in search of more than N$12 million he pocketed for his role as “agent” between the ODC and shady South African companies. In an affidavit placed before the High Court this week, Trade and Industry Permanent Secretary Andrew Ndishishi, in his capacity as an ODC director, appears doubtful that the money will be recovered.He said evidence at the ODC’s disposal indicated that the investment companies were unable to repay the money.”The investment proposed by the respondent [Boonzaaier] and his principal or associates was a scheme cemented in fraud,” contends Ndishishi in his affidavit.Boonzaaier was fingered in the Social Security Commission (SSC) Presidential inquiry for allegedly receiving millions of dollars in commission and kickbacks for policies he brokered with them.During the Avid-SSC High Court hearing, Boonzaaier said he had been ruined financially by the Presidential inquiry and had subsequently struggled to do business.The ODC maintains that sequestrating Boonzaaier’s personal estate could be to the advantage of creditors.Boonzaaier’s relationship with the ODC dates back to 2001, when he began “advising” ODC Finance Manager Mabos Ortmann on investments.Ndishishi’s affidavit, which details the trail of the ODC’s missing millions, provides information Ndishishi says was conveyed to him by Ortmann, who in turn was key in negotiating with purported brokers and investment companies, including Boonzaaier.As an agent of Credit and Development Limited, a South African company based at Stellenbosch, Boonzaaier kick-started talks to invest N$10 million.Credit and Development Limited proposed investing the money with Mortgage Bond Finance and Services, a South African company based in Johannesburg.An amount of N$12 million was then deposited into Boonzaaier’s Commercial Bank account in Windhoek, purportedly to transfer further to the South African investment institutions he was acting for.”The respondent is at least responsible, accountable and indebted to the applicant in the amount of N$12 million together with the interest at the agreed rate of twenty per cent,” said Ndishishi.Although there is no written agreement between the ODC and Boonzaaier, the ODC contends that the agreement was based upon Boonzaaier’s proposal, correspondence between them and oral communication at meetings.In November 2002, Boonzaaier informed the ODC that he was no longer an agent of Credit and Development Limited and that the new contact person was Tertius Theart of Comserve Investments, based in Cape Town.The ODC continued to receive faxed communications from Mortgage Bond Finance and Services via Boonzaaier, and copies of the supporting documentation, submitted to the court, show that he was the go-between.Mortgage Bond Finance and Services was liquidated in 2003, which the ODC says it had no knowledge of, else it would have tried to recover the money.In that year, Mortgage Bond Financial Services reported sluggish performance of the ODC investment and Philip Fourie of Great Triangle Investments then stepped in and arrangements were made to transfer what by that time was an amount of N$34 million, to his company.This set the ball rolling for several more millions to fly Great Triangle’s way during 2004.From Ortmann’s communication with Theart and Fourie as the main person to have dealt with them for the last two years, Ndishishi contends that: “I am of the opinion now that all these presentations are groundless, empty promises and … a fraudulent scheme meant to have induced the applicant [the ODC] to part with the money that it held on the public’s behalf.”The ODC believes that sequestrating Boonzaaier’s estate would allow the trustee to investigate circumstances of the transactions in the money trail and to institute proceedings to recover money to the benefit of creditors.The ODC has requested the High Court to consider the matter as semi-urgent, saying that the N$100 million was a very large one that should have been repaid with interest a year ago.Winding up Boonzaaier’s estate, Ndishishi says, is in the “public interest” and would pave the way for the investigation of what has happened to the ODC’s money and whether the money is recoverable at all.”The longer the delay in sequestrating the respondent [Boonzaaier], the less the likelihood that the investment funds will be recovered at all,” says Ndishishi’s affidavit.Boonzaaier will have until November 21 to oppose his sequestration.In an affidavit placed before the High Court this week, Trade and Industry Permanent Secretary Andrew Ndishishi, in his capacity as an ODC director, appears doubtful that the money will be recovered.He said evidence at the ODC’s disposal indicated that the investment companies were unable to repay the money.”The investment proposed by the respondent [Boonzaaier] and his principal or associates was a scheme cemented in fraud,” contends Ndishishi in his affidavit.Boonzaaier was fingered in the Social Security Commission (SSC) Presidential inquiry for allegedly receiving millions of dollars in commission and kickbacks for policies he brokered with them.During the Avid-SSC High Court hearing, Boonzaaier said he had been ruined financially by the Presidential inquiry and had subsequently struggled to do business.The ODC maintains that sequestrating Boonzaaier’s personal estate could be to the advantage of creditors. Boonzaaier’s relationship with the ODC dates back to 2001, when he began “advising” ODC Finance Manager Mabos Ortmann on investments.Ndishishi’s affidavit, which details the trail of the ODC’s missing millions, provides information Ndishishi says was conveyed to him by Ortmann, who in turn was key in negotiating with purported brokers and investment companies, including Boonzaaier.As an agent of Credit and Development Limited, a South African company based at Stellenbosch, Boonzaaier kick-started talks to invest N$10 million.Credit and Development Limited proposed investing the money with Mortgage Bond Finance and Services, a South African company based in Johannesburg.An amount of N$12 million was then deposited into Boonzaaier’s Commercial Bank account in Windhoek, purportedly to transfer further to the South African investment institutions he was acting for.”The respondent is at least responsible, accountable and indebted to the applicant in the amount of N$12 million together with the interest at the agreed rate of twenty per cent,” said Ndishishi.Although there is no written agreement between the ODC and Boonzaaier, the ODC contends that the agreement was based upon Boonzaaier’s proposal, correspondence between them and oral communication at meetings.In November 2002, Boonzaaier informed the ODC that he was no longer an agent of Credit and Development Limited and that the new contact person was Tertius Theart of Comserve Investments, based in Cape Town.The ODC continued to receive faxed communications from Mortgage Bond Finance and Services via Boonzaaier, and copies of the supporting documentation, submitted to the court, show that he was the go-between.Mortgage Bond Finance and Services was liquidated in 2003, which the ODC says it had no knowledge of, else it would have tried to recover the money.In that year, Mortgage Bond Financial Services reported sluggish performance of the ODC investment and Philip Fourie of Great Triangle Investments then stepped in and arrangements were made to transfer what by that time was an amount of N$34 million, to his company.This set the ball rolling for several more millions to fly Great Triangle’s way during 2004.From Ortmann’s communication with Theart and Fourie as the main person to have dealt with them for the last two years, Ndishishi contends that: “I am of the opinion now that all these presentations are groundless, empty promises and … a fraudulent scheme meant to have induced the applicant [the ODC] to part with the money that it held on the public’s behalf.”The ODC believes that sequestrating Boonzaaier’s estate would allow the trustee to investigate circumstances of the transactions in the money trail and to institute proceedings to recover money to the benefit of creditors.The ODC has requested the High Court to consider the matter as semi-urgent, saying that the N$100 million was a very large one that should have been repaid with interest a year ago.Winding up Boonzaaier’s estate, Ndishishi says, is in the “public interest” and would pave the way for the investigation of what has happened to the ODC’s money and whether the money is recoverable at all.”The longer the delay in sequestrating the respondent [Boonzaaier], the less the likelihood that the investment funds will be recovered at all,” says Ndishishi’s affidavit.Boonzaaier will have until November 21 to oppose his sequestration.