Concerns have been raised about why the office of the Master of the High Court in Cape Town did not appoint a liquidator immediately to take over Canyon Springs Investments 12, which was provisionally liquidated in the Western Cape High Court on June 13.
Provisional liquidators Muller Terblanche Trustees were finally appointed on June 29, but for two weeks the company was not placed under supervision.
During this time it was feared that documents could have been shredded and vital evidence lost, said attorney Barnabas Xulu from Xulu Liversage Inc.
Xulu represents Trilinear Empowerment Trust, the investment vehicle used when about R93-million of the provident fund money of workers belonging to the South African Clothing and Textile Workers Union was invested in Canyon Springs.
Xulu said the trustees of the trust were hoping to recover as much of the money as possible.
Canyon Springs is co-owned by Deputy Minister of Economic Development Enoch Godongwana and his wife, Thandiwe, whose 50% shares are held in a family trust. Alleged loan facilitator Richard Kawie and company director Mohan Patel hold the other half in their family trusts.
“The Trilinear Empowerment Trust trustees were very worried that the appointment of a provisional liquidator was not made immediately,” said Xulu. “Anything could happen in two weeks if there is nobody supervising a company placed under provisional liquidation. It is very unusual.”
Adding to the mystery, Warno Steenkamp, assistant master in the Western Cape High Court, said he had been given the Canyon Springs file only recently. “The file was only brought to me on June 27. I really don’t know what the delay was. A liquidator will be appointed by this afternoon [Wednesday June 29].”
Steenkamp sent confirmation of the appointment of a provisional Âliquidator two hours later.
Xulu said he was now preparing an application for a section 417 inquiry under the Companies Act to be held as soon as possible.
“It’s a relief now that Muller Terblanche Trustees will able to get to the bottom of this matter quickly. With a section 417 inquiry, everything will be revealed.”