Sharemax woes not yet over

Sharemax woes not yet over
29 Mar 2011
Forensic investigator, Pierre Hough, claims that an offer of compromise to Sharemax creditors won’t resolve problems facing investors in the scheme.

Sharemax’s application for permission from the High Court to reach an offer of compromise with creditors may be halted according to Chase International managing director Pierre Hough.

He says the planned offer of compromise is trying to legalise an illegal act and is prejudicial to the rights of prospective investors.

Hough, who is a business strategist and specialist forensic investigator, alleges that there were no investors or shareholders in either The Villa or Zambezi Retail Park because a condition that had to be met for the scheme to become effective had not been fulfilled.

He says this condition was that the properties be transferred to the syndication vehicle and this condition had not been met. He says that in terms of the government notice on property syndications, the money deposited by prospective investors into the scheme had to be repaid to them

Hough says that the government notice is clear: the money deposited must be repaid to the applicants and he claims, the issue of share certificates to prospective investors is “highly irregular” and “possibly fraudulent”.

Meanwhile, Dawie Roodt, chairman of the Efficient Group and a director of Sharemax said that he cannot comment on claims that there are no shareholders in Zambezi Retail Park to The Villa.

He confirmed that the planned offer of compromise would probably involve four Sharemax schemes: Zambezi Retail Park, The Villa and Sharemax’s income and growth plans. He says the application to the High Court will be launched soon.

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About the Author
Paddy Hartdegen
Paddy Hartdegen

Freelance columnist at property24.com.