Former LeisureNet boss Peter Gardener on Wednesday maintained steadfastly that it never crossed his mind to declare his interest in a multimillion-rand deal he negotiated on behalf of his company.
Gardener was being cross-examined for the third day in succession in the Cape High Court, where he and fellow former joint chief executive of the now-defunct group Rod Mitchell face fraud and money laundering charges.
The interest related to a share he acquired in a German gym operation, which LeisureNet subsequently bought out, a deal that netted Gardener and Mitchell two million Deutschmarks each.
Advocate Rudi van Rooyen, appearing for the state, quizzed Gardener closely on a LeisureNet board meeting in May 1999 at which final payment for the deal was authorised.
He pointed out to Gardener, who was a board member, that according to the minutes of the meeting, another director, Brian Marriott, at one point excused himself from a discussion on a chain of golfing shops because he had an interest in that business.
Though Gardener conceded that he realised in retrospect that it was improper for him to have been part of the decision-making on the German deal, he did not agree that Marriott’s action had reminded him of his own duty.
He said it did not cross his mind to do so, either at that meeting, or when he was making arrangements for his share to be paid into an offshore trust.
”It went straight into an offshore trust and I didn’t think about it,” he said.
”It’s the equivalent of R6-million,” remarked acting Judge Dirk Uijs.
”Correct,” said Gardener.
”Quite a windfall,” said Uijs.
”Correct,” replied Gardener.
Uijs put it to him that he knew at the time that a director had a duty to disclose an interest in a contract that was being or had been finalised, and that he knew he was getting R6-million as a consequence of his interest in a company with which LeisureNet was going to do business.
”Yes,” replied Gardener.
”It never crossed your mind to inform your board of this?” asked Uijs.
”No,” said Gardener.
The hearing continues Thursday. — Sapa