More than R17m had been paid out to beneficiaries of the Living Hands Umbrella Trust, which invested with Fidentia.
|||Cape Town - More than R17 million had been paid out to beneficiaries of the Living Hands Umbrella Trust, which invested with asset management company Fidentia.
Living Hands confirmed that R17 673 413.35 had been paid out to 15 200 beneficiaries since January.
This comes after former Fidentia boss J Arthur Brown was fined R150 000 for two counts of fraud.
Brown was convicted in the Western Cape High Court recently after he admitted making misrepresentations in handling investments for the Transport Education and Training Authority and the Mantadia Asset Trust Company.
Judge Anton Veldhuizen handed down a R75 000 fine on each count, as well as an 18-month prison sentence, suspended for four years, also on each count.
The sentence drew widespread criticism, with the Financial Services Board (FSB) stating that the sentence would not deter white-collar crime.
The National Prosecuting Authority (NPA) has applied for leave to appeal against the sentence given to Brown. Papers were filed on Friday in the Western Cape High Court, NPA spokesman Eric Ntabazalila said.
Brown said that after the case was finalised he would take the curators to court, claiming they have the money.
Many beneficiaries, including ex-mineworkers, widows and orphans, believe Brown did not steal or misappropriate their money. They say they had not been paid out since Fidentia was placed under curatorship in 2007.
But one of the curators, Dines Gihwala, described the claims that the money was with him as “utter rubbish”.
In a statement, Living Hands said a percentage of more than the R1 billion invested with them was made to 15 200 beneficiaries.
More than 67 000 people had invested through Living Hands and there are still nearly 58 000 beneficiaries who still have to be paid.
Those included beneficiaries whose details have not been verified and therefore could not be paid as they have not made contact with the trustees. Over the weeekend, Brown visited beneficiaries of the trust in Khayelitsha.
According to the Weekend Argus, Brown told the beneficiaries that “every month we paid money into your bank accounts then the Financial Services Board came along and said we stole your money”.
“They appointed curators who said they didn’t know who you are, didn’t know your bank accounts, didn’t have account records, and didn’t remember the Living Hands Trust cards you were given. When people started asking questions they said I stole the money.”
* Any beneficiary who had not received payment should contact Odyssy Consultancy CC at 084 259 6592, 074 649 2881, 079 648 5265, 079 648 5249, Fax: 086 621 6758, e-mail: info@od-con.co.za to have their details verified or go to their nearest TEBA Ltd office with proper identification, beneficiary trust number and bank account details.
jade.otto@inl.co.za
Cape Argus