Josea’s business bank account frozen

THE High Court on Wednesday froze the bank account of one of the businesses of Nico Josea, who remains in Police custody following his arrest in connection with the disappearance of a N$30 million investment of the Social Security Commission, after Josea’s wife had allegedly tried to withdraw N$50 000 from the account on Monday.

Josea had already lost control over his personal bank accounts and the accounts of his asset management company, Namangol Investments, when his personal estate was provisionally sequestrated and Namangol was ordered to be provisionally liquidated on July 27. Eric Knouwds, who has been put in charge of both Namangol Investments as its provisional liquidator and of Josea’s personal estate as its provisional trustee, extended his attention to one of Josea’s businesses, N.C.J.Mechanical Maintenance CC to have its bank account frozen.Acting Judge Raymond Heathcote granted an order prohibiting N.C.J.Mechanical Maintenance CC from transferring any money out of its bank account with Nedbank Namibia, while Nedbank itself was also ordered not to permit the withdrawal or transfer of any money from the account.In an affidavit filed with the High Court, Knouwds stated that a bank official had informed him on Monday that Josea’s wife had tried to withdraw N$50 000 from the close corporation’s Nedbank account.Knouwds stated that he could only assume that Josea’s wife was acting on Josea’s instructions.He added that it was evident that Josea “is attempting to make use of funds that were misappropriated from the Avid-SSC investment funds”, and that Josea “is trying to dissipate such funds behind the back of the provisional liquidator/trustee and the Court”.Knouwds pointed out in his statement that after the SSC had transferred N$30 million to Avid Investment Corporation on January 26, Avid transferred N$29,5 million of this money to Namangol Investments two days later.Namangol Investments in turn transferred N$20 million to a bank account of Alan Rosenberg Investment Services in South Africa, while various other large sums of money were transferred to Josea’s personal account and other accounts in South Africa.On March 14, Josea again received a transfer of N$14,899 million into his bank account from a law firm in Johannesburg.This was part of the SSC’s money that had previously found its way to Alan Rosenberg, SSC lawyers have argued before Acting Judge Heathcote during the Companies Act inquiry into the SSC’s missing N$30 million.Knouwds also stated as much in his affidavit on Wednesday.He stated that Josea had admitted under oath that the N$14,899 million was a partial refund of the N$20 million that had been transferred to the Rosenberg account in South Africa, and that as such Josea has admitted during the Companies Act inquiry that the money had formed part of the SSC/Avid investment funds.Knouwds also informed the court that he had obtained a bank deposit slip showing that Josea had deposited a cheque for N$100 000 drawn on his personal bank account into the account of N.C.J.Mechanical Maintenance CC on March 31.”(Josea) thus diverted the SSC/Avid investment funds from his personal account into the business account of (N.C.J.Mechanical Maintenance CC), of which he is the sole member.This constituted theft of such funds and an attempt by (Josea) to use such funds not for investment purposes but for his own ends,” Knouwds charged.In terms of the order that Acting Judge Heathcote granted yesterday, the Nedbank Namibia account of N.C.J.Mechanical Maintenance CC will be frozen in the interim until September 26.Josea has been in Police custody since his arrest on a charge of fraud, alternatively theft, on July 26.Eric Knouwds, who has been put in charge of both Namangol Investments as its provisional liquidator and of Josea’s personal estate as its provisional trustee, extended his attention to one of Josea’s businesses, N.C.J.Mechanical Maintenance CC to have its bank account frozen.Acting Judge Raymond Heathcote granted an order prohibiting N.C.J.Mechanical Maintenance CC from transferring any money out of its bank account with Nedbank Namibia, while Nedbank itself was also ordered not to permit the withdrawal or transfer of any money from the account.In an affidavit filed with the High Court, Knouwds stated that a bank official had informed him on Monday that Josea’s wife had tried to withdraw N$50 000 from the close corporation’s Nedbank account.Knouwds stated that he could only assume that Josea’s wife was acting on Josea’s instructions.He added that it was evident that Josea “is attempting to make use of funds that were misappropriated from the Avid-SSC investment funds”, and that Josea “is trying to dissipate such funds behind the back of the provisional liquidator/trustee and the Court”.Knouwds pointed out in his statement that after the SSC had transferred N$30 million to Avid Investment Corporation on January 26, Avid transferred N$29,5 million of this money to Namangol Investments two days later.Namangol Investments in turn transferred N$20 million to a bank account of Alan Rosenberg Investment Services in South Africa, while various other large sums of money were transferred to Josea’s personal account and other accounts in South Africa.On March 14, Josea again received a transfer of N$14,899 million into his bank account from a law firm in Johannesburg.This was part of the SSC’s money that had previously found its way to Alan Rosenberg, SSC lawyers have argued before Acting Judge Heathcote during the Companies Act inquiry into the SSC’s missing N$30 million.Knouwds also stated as much in his affidavit on Wednesday.He stated that Josea had admitted under oath that the N$14,899 million was a partial refund of the N$20 million that had been transferred to the Rosenberg account in South Africa, and that as such Josea has admitted during the Companies Act inquiry that the money had formed part of the SSC/Avid investment funds.Knouwds also informed the court that he had obtained a bank deposit slip showing that Josea had deposited a cheque for N$100 000 drawn on his personal bank account into the account of N.C.J.Mechanical Maintenance CC on March 31.”(Josea) thus diverted the SSC/Avid investment funds from his personal account into the business account of (N.C.J.Mechanical Maintenance CC), of which he is the sole member.This constituted theft of such funds and an attempt by (Josea) to use such funds not for investment purposes but for his own ends,” Knouwds charged.In terms of the order that Acting Judge Heathcote granted yesterday, the Nedbank Namibia account of N.C.J.Mechanical Maintenance CC will be frozen in the interim until September 26.Josea has been in Police custody since his arrest on a charge of fraud, alternatively theft, on July 26.