In a groundbreaking court case, two liquidators and trustees were interdicted from further administering an estate and handling its assets involving businessman Tuwani Mulaudzi and his businesses.
Mulaudzi was charged with fraud, theft, money laundering and racketeering relating to a R48 million investment gone wrong with Old Mutual.
His troubles with the insurance giants started in 2014 when, according to media reports, after a dispute with the insurance giant he was accused of having ceded to Nedbank.
However, he was acquitted and now is seeking to get his assets back.
The court’s decision came after allegations of hidden assets and cash surfaced, prompting an investigation by the Special Investigating Unit (SIU).
The court ordered a forensic investigation into the liquidators’ fitness to hold office, sparking a Section 381 enquiry. However, suspicions arose that the Master’s office officials were dragging their feet, potentially due to collusion with the accused.
Despite lodging an appeal in December 2023, the liquidators and trustees suffered a crushing defeat in July. The court reaffirmed its initial ruling, prohibiting them from touching the assets until the liquidations are set aside.
The saga continues, with the liquidators still refusing to return the assets to their rightful owner. This case exposes the dark underbelly of corruption and collusion in the insolvency industry, highlighting the need for greater accountability and transparency.
The outcome of the Section 381 enquiry and the return of the assets remain uncertain, leaving the victim seeking closure and restitution.
In court papers, acting North Gauteng Judge ENB Khwinana dismissed the appeal with costs last week.
“After considering the arguments presented by both the applicants' and respondents' counsel, I find no evidence that I have misdirected myself on either the facts or the law. The applicant’s leave to appeal is part of my judgment, save to say the reasons have been given in my judgment.
“In my view there is no reasonable prospect that another court could come to a different conclusion,” Khwinana said.
He further quoted a judgment in the Supreme Court of Appeals involving Dexgroup (Pty) Ltd v Trusco Group. “The need to obtain leave to appeal is a valuable tool in ensuring that scarce Judicial resources are not spent on appeals that lack merit. It should, in this case, have been deployed by refusing leave to appeal,” the president officer said.
In another court order, penned in 2022 reversing the initial freezing order of 2014 order by the High Court of SA Western Cape division, it states: “The restraint order granted in terms of the prevention of organised crime act, 1998 is rescinded.”
It further ordered Jurgens Steenkamp, the curator, to release all assets under his control.
However, Steenkamp had not done so to date. Attempts to reach the Chief Master, who appoints the liquidators, trustees and curators, were fruitless.
Mulaudzi speaking to The Star on Tuesday said he would continue to fight tooth and nail for his assets to be released.
He said: “My plan is to keep fighting evil, crush it where it rears its ugly head and make South Africa a better and safer place for generations that come after us. You can't let a good man down…As I always say, no amount of money will undo the reputational damage done by this whole drama. No amount of money will erase the pain, suffering and the humiliation that my family have had to endure all these years. It has left scars that will take decades to heal.”
The Star