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Johannesburg - Clothing workers' retirement funds were allegedly lent to Canyon Springs Investment 12 to procure the Glenrand MIB pension fund administrator, but this transaction was never completed.
The transaction was announced by the JSE news service, Sens, in June 2007, but fell through later that year.
Nevertheless, in March 2007 about R29m from the Trilinear Empowerment Trust (TET) had allegedly gone to Canyon for the transaction, according to testimony in the liquidation inquiry.
Canyon Springs is currently under provisional liquidation.
During the inquiry testimony was presented regarding the commission that Trilinear Specialised Finance (TSF) had earned from Canyon Springs for the company’s fund-raising, or for advice.
TSF belongs to Sam Buthelezi of the Trilinear group of companies.
During the testimony given by Sipamandla Jama, a Trilinear Capital fund manager from September 2010 to mid-April 2011, it emerged that TSF had earned R25m in commission from the money that has passed from TET to Canyon.
Advocate Gavin Woodland, senior counsel heading the interrogation, said that money had been “skimmed off” by TSF. He reckoned it could be considered unscrupulous commission as the money in the TET had been derived from the provident funds; Jama concurred.
It was also submitted that Richard Kawie - a well-known figure in trade-union circles who had apparently played a significant role behind the scenes at Canyon and in procuring the money from TET - had received around R8.7m of the money. It had been paid to one of his companies, Eclipse Capital, and others.
Jama also alleged that Kawie had received more than R5m from Pinnacle Point through his companies.
From Jama's evidence it also appears that R13m of a R15m Canyon Springs loan to the Leading Prospects company allegedly went to Buthelezi’s Pasima family trust.
Last week testimony was given that the loan facility to
Canyon had been based on an oral agreement, which was signed only two years
after the loan had been granted.
