/ 9 July 2004

Government to probe SA’s liquidation industry

Justice Minister Brigitte Mabandla has appointed a committee of inquiry to probe the country’s liquidation industry, it was announced on Friday.

This follows allegations of fraud and illegal practices in the multi-billion rand industry.

Mabandla said the committee would be appointed as soon as possible and would report back to her within three months. She said the terms of reference had already been formulated but the members of the committee had not yet been selected.

“The committee will make recommendations to me on any deficiencies in the current administrative system which allow for undesirable or illegal practices,” she said. The committee would also look into allegations of corruption and the use of “fronts” in liquidations. – I-Net Bridge