Run-down hotel’s auction a finale to Fidentia scam

BIDDERS spent a cumulative R39million on a run-down hotel and spa in the Cape Winelands yesterday.

It was no ordinary auction – it was the final chapter of the Fidentia fraud case which rocked the country a few years ago.

The property was owned by the now defunct company.

Thousands of widows and orphans lost more than R1-billion in the financial scandal that unravelled almost a decade ago.

It was masterminded by Fidentia boss J Arthur Brown, who is now serving a 15-year prison sentence for fraud.

Several would-be buyers turned out to bid for the hotel‚ spa‚ conference centre and three villas, which were to be sold as various lots at the luxury One & Only Hotel in Cape Town.

The property was touted as having “sweeping views of the Simonsberg mountains”.

Brown claimed in 2008 that the resort was worth R350-million.

But one of the widows‚ Joyce Dayimani‚ said she doubted that she would ever see a penny of her late husband’s pension.

Auctioneers ClareMart described the auction as a success. CEO Jonathan Smiedt said about 100 investors had shown interest in the property.

“I am very happy with the resu Smiedt said.

“If you consider that the property went for a total of R39-million and you have got to add fees and VAT to that. We are probably looking at the R42-million mark.”

John Levin‚ one of the Fidentia co-curators‚ shared Smiedt’s sentiments.

“I am actually delighted that after 10 years we have closed down this curatorship and given people their money and brought this whole tragedy to an end,” Levin said.

He said he was not surprised that the property was sold for far less: “Unfortunately Brown made a habit of overpaying. Maybe the curators had wished to recover the money but we have never thought we would get anywhere near those values. With time the estate has run down‚ so I think we are very fortunate to get these prices.”

Levin is set to meet with the Financial Services Board to have the sale confirmed.

Since their appointment in 2012‚ the trustees have traced and paid more than 26 000 beneficiaries and paid out more than R31-million to date. — TMG Digital