Avid liquidators hope to recover N$25 million of SSC’s N$30m

FURTHER legal action will inevitably have to be pursued to get back a large portion of the N$30 million the Social Security Commission invested with inexperienced investment company Avid.

When the High Court inquiry into the liquidation of Avid ended on Thursday, SSC legal counsel Andrew Corbett said that liquidators in South Africa and in Namibia had traced about N$25 million in cash and assets to date. However it could be several more months until liquidators lay their hands on what remains of the SSC’s N$30 million as well as another N$7 million invested with Avid by Kalahari Holdings.Corbett said legal steps would have to be taken against shady South African financial trader Alan Rosenberg, who is set to appear before an insolvency inquiry in Cape Town tomorrow, to recover N$6 million.When South Africa’s special police unit, the Scorpions, froze an account of Rosenberg’s a few weeks ago, it expected to find the money there.But Corbett said on Thursday that there was no money in that account.When N$29,5 million of the SSC investment was transferred by Avid to Nico Josea’s Namangol Investments, the money flew in many different directions.At least N$7,7 million is frozen in a Bellville account of Dean Africa and plans are now underway to return that money to Namibia.The account of Dey-Yar Investments, a close corporation of late Avid CEO Lazarus Kandara, holds N$4 million paid by Namangol Investments.Corbett said he expected another legal dispute to ensue with Krueger and Van Vuuren Legal Practitioners, the legal firm to which Kandara is believed to have transferred a N$5,5-million investment of Kalahari Holdings.Corbett told the court that the firm had made an undertaking not to pay this money to anyone while the liquidation process was still ongoing.He was also hopeful that another N$3 million could be recovered from platinum shares Josea had bought in South Africa.The inquiry heard last week that Josea had been “ripped off” in this transaction, paying too high a price for the shares.By Thursday, the Scorpions had also seized a bag containing diamonds from a courier company in Johannesburg, for which Josea paid N$2,6 million.Corbett said liquidators were expecting some money to come from this.Another of Josea’s business accounts – NCJ Mechanicals – has also been frozen.It is believed to have a balance of around N$53 000.Nico Josea’s brother, Benedictus Josea, is also expected to cough up N$4,6 million he received from his brother.Settlement discussions are still ongoing.By last week, all Josea’s vehicles – to the value of N$1,2 million – had been attached.Liquidators expect to get at least half this amount back from their sale.Proceedings are also underway to have Kandara’s wife Christophine repay N$885 000 deposited into her account – most of which her husband spent on the family.An amount of N$310 000 Josea paid on his house would likely also be recovered through the sequestration of his estate.Three church “brothers” and the Voice of God church itself, to whom Josea made generous donations, have all signed acknowledgements of debt.To date the Voice of God has repaid N$100 000, while Heinrich Helm, a former Namangol CEO, has started repaying N$520 000 and John Smith, N$100 000.The court heard, however, that another “brother”, Peter Boonzaaier, had already defaulted on his first instalment in repaying N$480 000.Corbett said he had learned through the media that the Sam Nujoma Foundation would return the N$20 000 it had received in pledges from Namangol Investments and that this amount had been added to the recovery list.But there are certain transactions made by Josea from which the liquidators do not expect to recover anything.These include money drawn through cash cheques to the value of N$1,4 million; N$251 000 Josea paid to the Receiver of Revenue; N$250 000 from another South African trader, Steven Stanley; N$192 000 spent on travel costs; and numerous withdrawals from automated teller machines of about N$95 000.However it could be several more months until liquidators lay their hands on what remains of the SSC’s N$30 million as well as another N$7 million invested with Avid by Kalahari Holdings.Corbett said legal steps would have to be taken against shady South African financial trader Alan Rosenberg, who is set to appear before an insolvency inquiry in Cape Town tomorrow, to recover N$6 million. When South Africa’s special police unit, the Scorpions, froze an account of Rosenberg’s a few weeks ago, it expected to find the money there.But Corbett said on Thursday that there was no money in that account.When N$29,5 million of the SSC investment was transferred by Avid to Nico Josea’s Namangol Investments, the money flew in many different directions.At least N$7,7 million is frozen in a Bellville account of Dean Africa and plans are now underway to return that money to Namibia.The account of Dey-Yar Investments, a close corporation of late Avid CEO Lazarus Kandara, holds N$4 million paid by Namangol Investments.Corbett said he expected another legal dispute to ensue with Krueger and Van Vuuren Legal Practitioners, the legal firm to which Kandara is believed to have transferred a N$5,5-million investment of Kalahari Holdings.Corbett told the court that the firm had made an undertaking not to pay this money to anyone while the liquidation process was still ongoing.He was also hopeful that another N$3 million could be recovered from platinum shares Josea had bought in South Africa.The inquiry heard last week that Josea had been “ripped off” in this transaction, paying too high a price for the shares.By Thursday, the Scorpions had also seized a bag containing diamonds from a courier company in Johannesburg, for which Josea paid N$2,6 million.Corbett said liquidators were expecting some money to come from this.Another of Josea’s business accounts – NCJ Mechanicals – has also been frozen.It is believed to have a balance of around N$53 000.Nico Josea’s brother, Benedictus Josea, is also expected to cough up N$4,6 million he received from his brother.Settlement discussions are still ongoing.By last week, all Josea’s vehicles – to the value of N$1,2 million – had been attached.Liquidators expect to get at least half this amount back from their sale.Proceedings are also underway to have Kandara’s wife Christophine repay N$885 000 deposited into her account – most of which her husband spent on the family.An amount of N$310 000 Josea paid on his house would likely also be recovered through the sequestration of his estate.Three church “brothers” and the Voice of God church itself, to whom Josea made generous donations, have all signed acknowledgements of debt.To date the Voice of God has repaid N$100 000, while Heinrich Helm, a former Namangol CEO, has started repaying N$520 000 and John Smith, N$100 000.The court heard, however, that another “brother”, Peter Boonzaaier, had already defaulted on his first instalment in repaying N$480 000.Corbett said he had learned through the media that the Sam Nujoma Foundation would return the N$20 000 it had received in pledges from Namangol Investments and that this amount had been added to the recovery list.But there are certain transactions made by Josea from which the liquidators do not expect to recover anything.These include money drawn through cash cheques to the value of N$1,4 million; N$251 000 Josea paid to the Receiver of Revenue; N$250 000 from another South African trader, Steven Stanley; N$192 000 spent on travel costs; and numerous withdrawals from automated teller machines of about N$95 000.