Under pressure: Ioannis Ntinos is accused of blowing a R3-million government loan given to a small business to enter the fruit export trade. His liquidated company is still listed in a state-backed publication.
Mendiswa Mzamane has had to fight a debt collector and now civil court proceedings for non-payment of an R3-million government loan that was meant to boost her tiny business.
In a deal backed by the Small Enterprise Funding Agency (Sefa), she paid businessman Ioannis Ntinos R3-million to source and ship 15 containers of Valencia oranges to her customer in the United Arab Emirates.
But Ntinos short-changed Mzamane, at the time a new entrant in the food industry, sending just one container of fruit and leaving her out of pocket as a result.
Last week the Mail & Guardian revealed details of the liquidation of his company, Cosmo Fruit, and an official move to hunt for assets as creditors emerged from as far afield as Nigeria, India and Greece.
Liquidators have confirmed details submitted by some of these creditors, which include two companies in Greece owed R1.9-million and R1.6-million respectively, and five entities based in India submitted requisitions for claims totalling more than R5-million.
This week further information emerged suggesting that Ntinos may have known all along that he would not be able to deliver on Mzamane’s order.
“It was the end of citrus season. Everyone knew it would be near impossible for him to find the fruit,” said a source with intimate knowledge of this transaction.
By January last year Mzamane, at her wits’ end, reported him to the police, who have confirmed that the Hawks are handling the investigation, which is now at an advanced stage.
Ntinos last week declined to comment and this week failed to respond to email and SMS questions.
Mzamane’s bank, First National Bank, confirmed that it acted as an escrow agent to satisfy conditions for the loan set by Sefa.
Mzamane’s company, Razoscan, had signed an agreement with Cosmo Fruit.
In response to questions FNB said the agreement outlined that it would disburse the funds to Cosmo Fruit upon receipt of independent confirmation that the order met set requirements, including quality and quantity obligations.
“FNB received confirmation from Sefa stating that Razoscan had complied with the provisions set out in the collection agreement.
“Both Sefa and Razoscan sent the bank instructions, authorising FNB to disburse the funds to the supplier,” the bank said in an email.
As part of the loan conditions Sefa required that an independent third party check and verify the cargo. Documents seen by the M&G suggest that Ntinos secured this at a cost of just over R2 600. It was against confirmation of this check that Sefa authorised the release of the money to Cosmo Fruit.
But, as Mzamane said in her letter to Small Business Development Minister Lindiwe Zulu, it appears “there was no fruit to speak of” — at least no more than the one container.
She had hoped the minister would be able to intervene or assist her in resolving the mess caused by Ntinos’s alleged unscrupulous behaviour.
As she faces a court battle over the unpaid loan, it seems to be business as usual for Ntinos, whose company was described as “hopelessly insolvent ” by the high court in Cape Town.
This week he was rubbing shoulders with some of the world’s biggest fruit traders at the annual Fruit Logistica in Berlin.
Even though liquidated, Cosmo Fruit also enjoys prime space in a government-backed trade directory, Fresh Food Trade SA 2017, which was distributed at the event.
The booklet was privately published in association with the department of agriculture, forestry and fisheries. The department said it does not carry any funding, although it does have “quality control” oversight.
Gerhard de Beer, of Malachite Media Services, said the inclusion of inserts for the first time in this year’s booklet was costly.
“When Mr Ntinos heard about it after he booked the rear cover, he offered to take up all the advertising space on the inserts.”
He said his company was not privy to details of the liquidation of Cosmo Fruit, but added that “thankfully” Ntinos did pay for his space in the booklet.