COL­LAPSE VIC­TIMS WAIT­ING

Finweek English Edition - - COMPANIES & INVESTMENTS - Tan­di­s­izwe Mahlut­shana

Among the vic­tims of PPG’s down­fall were the thou­sands of cloth­ing and tex­tile work­ers be­long­ing to the South­ern African Cloth­ing & Tex­tile Work­ers’ Union (Sactawu) whose R195m pen­sion fund had been in­vested in PPG, and had sub­se­quently dis­ap­peared.

Tony Canny, part­ner at Rout­ledge Modise Inc, who rep­re­sented Sactawu at the PPG com­mis­sion of in­quiry, told Fin­week that the in­quiry ended on 6 De­cem­ber last year.

Con­cerned par­ties had un­til 24 Jan­uary to no­tify the com­mis­sioner of the in­quiry, for­mer judge of the High Court, Judge Meyer Joffe, about the is­sues they wanted judg­ment on.

Af­ter such a no­ti­fi­ca­tion, the said par­ties are re­quired to hand in writ­ten sub­mis­sions to Judge Joffe for fi­nal judg­ment.

Some is­sues Fin­week has learnt would have to be con­sid­ered by Judge Joffe in his judg­ment in­clude the like­li­hood that PPG was prob­a­bly in­sol­vent even be­fore Sac- tawu made the in­vest­ment and as Canny says: “No one no­ti­fied my client [Sactawu]. That con­sti­tutes fraud and it could mean that the di­rec­tors of the com­pany must be held per­son­ally li­able for the losses.”

Canny fur­ther says that there will be some cap­i­tal re­cov­ery for the cred­i­tors, though it is un­likely to be any­where near the amount that was lost.

He holds a

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.