Fidentia investors only to hear in February

Johannesburg - For investors whose money is still held by the curators for Fidentia Holdings and its related companies, the curatorship has taken a  nasty turn.

The Western Cape Division of the high court granted the Financial Services Board (FSB) permission to have an application to repay R136m to investors ratified by the court.

This application was to have come before the court on December 8, but J Arthur Brown, alleged mastermind behind the Fidentia debacle, and three other parties indicated that they would contest the application.

Gerry Anderson, deputy registrar for financial advisory and intermediary services, said the FSB would oppose the Brown application.

The amount of R136m had been received from the sale of assets from the companies under curatorship.

It would have been repaid to the Transport Education and Training authority (Teta), investors in Balltron, the Antheru investment trust and the Living Hands Umbrella Trust.

Brown and the three other parties had also given notice of submitting an application to have the curators removed.

June Marks, Brown's legal representative, said the application was being contested because the payout would not be in investors' interests.

Marks said the application to have the curators removed was being submitted because the curatorship arose out of an FSB investigation report that, she claimed, was based on fabrication.

According to her, the 10 curator reports so far submitted to court contained factual errors.

Contrary to what had been indicated in the court reports, the curators had not yet paid money to Fidentia investors, said Marks.

Anderson confirmed that the FSB and the curators had been apprised of the steps taken.

They have already been served with the court documents.

Should Brown succeed with his counter-application, the matter concerning the distribution of funds to investors will be heard in court only on February 15.