‘Rosenberg pocketed N$2,5m from SSC’

ALLEGED rogue financial trader Alan Rosenberg earned some N$2,5 million from his role in what was supposed to be an investment of N$30 million on behalf of the Social Security Commission early this year, a South African legal inquiry focusing on the deal heard in Cape Town this week.

Rosenberg faced more questioning as part of an Insolvency Act inquiry into the financial affairs of Nico Josea, fraud-accused Chief Executive Officer of asset management company Namangol Investments, in Wynberg in Cape Town on Tuesday. Lawyer Andrew Corbett, who has been representing the SSC over the past two months in court proceedings that the SSC has launched in Namibia in an effort to recover its money, said yesterday that according to a briefing that he had received on the testimony heard during the Cape Town inquiry, Rosenberg took a cut of some N$2,5 million from N$20 million of the SSC’s money that landed in his bank account in late January.The N$20 million was transferred from an account of Namangol Investments in Namibia to a Johannesburg bank account held by Rosenberg on January 28.That was the same day that Avid Investment Corporation, the young asset management company with which the SSC agreed to invest N$30 million for a four-month period from late January, had transferred N$29,5 million of the SSC’s initial investment funds to Namangol Investments.A month and a half after he had received the N$20 million, Rosenberg paid back N$15 million to Josea, through the latter’s lawyers in Johannesburg.Josea and Rosenberg have claimed until now that this payment was made as a result of a court case that Namangol Investments lodged against Rosenberg.In that case Josea’s company had claimed that Rosenberg had breached their agreement for the further investment of the N$20 million.That litigation was settled when Josea and Rosenberg agreed to have a court order issued by the Witwatersrand Local Division of the High Court of South Africa on March 4.In terms of that order, Rosenberg and his bank, Standard Bank of South Africa, were ordered to immediately pay N$15 million that was in a bank account of Rosenberg to Namangol Investments.The court also ordered Rosenberg to pay a further N$15 million, in three monthly instalments of N$5 million each, to the company between April and June.Evidence heard at the inquiry in Cape Town this week indicates that the litigation between Josea and Rosenberg had been a sham, aimed at forcing Standard Bank South Africa to release the N$15 million from an account of Rosenberg that the bank was clamping down on at that stage, Corbett reported yesterday.He said a manager of the bank testified on Tuesday that the bank was doing a forensic audit of Rosenberg’s accounts at the time, after it had heard that the Texas bank registration number that Rosenberg had claimed his business, under the name of Alan Rosenberg Investment Banking, was registered under, was a fake.Bank records that are part of the Cape Town inquiry show that Rosenberg received N$1 million from the money that had been transferred from Namangol Investments shortly after that transfer had been done.According to what Rosenberg told the inquiry, Namangol agreed to pay him a “commission” of N$25 000 as well thereafter, Corbett added.He said he has been informed that Rosenberg has testified that the arrangement that resulted in the payback of the N$15 million from him to Namangol Investments in March, was accompanied by a side agreement according to which he was allowed to keep a further N$1,5 million of the money that Namangol Investments had originally transferred to him.Rosenberg – a man who over the past two months has made numerous promises that he would be paying up millions of dollars to cover the repayment of the SSC’s lost investment – once again promised this week that he would pay N$15 million to the provisional trustee and liquidator who has been put in charge of Josea’s estate and Namangol Investments’ financial affairs.He said this payment would be done by Monday, Corbett reported.Rosenberg is caught between two uncomfortable options, Corbett indicated.Having failed to pay the three monthly instalments of N$5 million to Namangol Investments that the court order had directed him to do, he is in contempt of court, and can be locked up over that.He has also been warned during the proceedings of the inquiry on Tuesday that if he does not deliver on his promise to pay the money by Monday, he will be sequestrated, and that he will be charged with fraud if he tries to move some N$1,5 million that still remains in a bank account of his out of that account, Corbett said.He added that the inquiry also heard another promise about money that would be returned to Josea’s provisionally sequestrated estate.That promise came from investment broker Johan Lochner, who sold Josea platinum mining shares for a total of N$3 million in February and March – after Namangol Investments had received the SSC’s money first from Avid and then again from Rosenberg – at a price of seven rand a share.With Lochner having bought the shares at R4 a share, he made a handsome 75 per cent profit on that deal – but he has now agreed to repay the R4 million to Josea’s estate by September 26, Corbett said.Both Lochner and Rosenberg have been told to appear at the inquiry again on September 26, when they can expect to be questioned about the progress they had made with following though on their promises.Lawyer Andrew Corbett, who has been representing the SSC over the past two months in court proceedings that the SSC has launched in Namibia in an effort to recover its money, said yesterday that according to a briefing that he had received on the testimony heard during the Cape Town inquiry, Rosenberg took a cut of some N$2,5 million from N$20 million of the SSC’s money that landed in his bank account in late January. The N$20 million was transferred from an account of Namangol Investments in Namibia to a Johannesburg bank account held by Rosenberg on January 28.That was the same day that Avid Investment Corporation, the young asset management company with which the SSC agreed to invest N$30 million for a four-month period from late January, had transferred N$29,5 million of the SSC’s initial investment funds to Namangol Investments.A month and a half after he had received the N$20 million, Rosenberg paid back N$15 million to Josea, through the latter’s lawyers in Johannesburg.Josea and Rosenberg have claimed until now that this payment was made as a result of a court case that Namangol Investments lodged against Rosenberg.In that case Josea’s company had claimed that Rosenberg had breached their agreement for the further investment of the N$20 million.That litigation was settled when Josea and Rosenberg agreed to have a court order issued by the Witwatersrand Local Division of the High Court of South Africa on March 4.In terms of that order, Rosenberg and his bank, Standard Bank of South Africa, were ordered to immediately pay N$15 million that was in a bank account of Rosenberg to Namangol Investments.The court also ordered Rosenberg to pay a further N$15 million, in three monthly instalments of N$5 million each, to the company between April and June.Evidence heard at the inquiry in Cape Town this week indicates that the litigation between Josea and Rosenberg had been a sham, aimed at forcing Standard Bank South Africa to release the N$15 million from an account of Rosenberg that the bank was clamping down on at that stage, Corbett reported yesterday.He said a manager of the bank testified on Tuesday that the bank was doing a forensic audit of Rosenberg’s accounts at the time, after it had heard that the Texas bank registration number that Rosenberg had claimed his business, under the name of Alan Rosenberg Investment Banking, was registered under, was a fake.Bank records that are part of the Cape Town inquiry show that Rosenberg received N$1 million from the money that had been transferred from Namangol Investments shortly after that transfer had been done.According to what Rosenberg told the inquiry, Namangol agreed to pay him a “commission” of N$25 000 as well thereafter, Corbett added.He said he has been informed that Rosenberg has testified that the arrangement that resulted in the payback of the N$15 million from him to Namangol Investments in March, was accompanied by a side agreement according to which he was allowed to keep a further N$1,5 million of the money that Namangol Investments had originally transferred to him.Rosenberg – a man who over the past two months has made numerous promises that he would be paying up millions of dollars to cover the repayment of the SSC’s lost investment – once again promised this week that he would pay N$15 million to the provisional trustee and liquidator who has been put in charge of Josea’s estate and Namangol Investments’ financial affairs.He said this payment would be done by Monday, Corbett reported.Rosenberg is caught between two uncomfortable options, Corbett indicated.Having failed to pay the three monthly instalments of N$5 million to Namangol Investments that the court order had directed him to do, he is in contempt of court, and can be locked up over that.He has also been warned during the proceedings of the inquiry on Tuesday that if he does not deliver on his promise to pay the money by Monday, he will be sequestrated, and that he will be charged with fraud if he tries to move some N$1,5 million that still remains in a bank account of his out of that account, Corbett said.He added that the inquiry also heard another promise about money that would be returned to Josea’s provisionally sequestrated estate.That promise came from investment broker Johan Lochner, who sold Josea platinum mining shares for a total of N$3 million in February and March – after Namangol Investments had received the SSC’s money first from Avid and then again from Rosenberg – at a price of seven rand a share.With Lochner having bought the shares at R4 a share, he made a handsome 75 per cent profit on that deal – but he has now agreed to repay the R4 million to Josea’s estate by September 26, Corbett said.Both Lochner and Rosenberg have been told to appear at the inquiry again on September 26, when they can expect to be questioned about the progress they had made with following though on their promises.