Investor to pursue Gihwala further
Grancy will try to recover extra R11m
LIECHTENSTEIN-based investment holding company Grancy, which won a bitter court battle against former Fidentia curator Dines Gihwala and his associate, are to pursue other charges against them.
The firm said on Saturday via its attorneys that apart from the R6m due to it under last week’s ruling they would seek other charges to claw back R11m relating to potential misappropriation of investments in mining company Scharrig.
Gihwala faces disciplinary proceedings by the Law Society, which could lead to his disbarment. He, associate Lancelot Manala and a Gihwala family trust could face criminal charges.
This relates to what Grancy and Zurich-based advisory company Montague Goldsmith, the second plaintiff in the matter, allege is “fraudulent or intentional misappropriation of funds”.
According to a partner at Webber Wentzel, Vlad Movshovich, who represents Grancy and Montague, an investigation by the Directorate for Priority Crime Investigation is continuing. More than R30m is likely to be owing to Grancy and Montague in the matter that dates back to 2005.
Mr Gihwala quit directorship and curator posts in the wake of a ruling by the Western Cape High Court on Thursday. The ruling declared him a delinquent director and disqualified him from being a company director for the
next seven years.
Mr Gihwala, the former chairman of law firm Cliffe Dekker Hofmeyr, told Business Day on Friday evening he had resigned because it was “the responsible thing to do under the circumstances”. But that he still had a right to seek leave to appeal against the judgment, he added.
The court found that Mr Gihwala and Mr Manala, both shareholders and directors of Seena Marena Investments, had “recklessly” breached their fiduciary duties to Seena Marena’s third shareholder, the offshore company Grancy Property. Mr Manala had not responded to questions about his involvement by the time of going to press.
Seena Marena was the majority shareholder in Ngatana Property Investments, a black economic empowerment investment company that acquired units in Spearhead Property Holdings.
According to Thursday’s ruling, an adequate accounting had to be made within 30 court days. Mr Gihwala said that “some years ago already” he had provided a comprehensive accounting and what remained was to determine the adequacy of that accounting and then to debate its accuracy. “I am committed to do whatever is required of me, provided its within my ability to do so.”
Mr Movshovich said his clients had been trying to get an adequate accounting since 2006. “Once an adequate account is furnished or if no adequate account is furnished (and the court will draw adverse inferences against Gihwala and Manala as a result), our clients will claim whatever amounts are due to them in the debatement phase.
“The precise amount is difficult to estimate at this stage, but having regard to the initial investment levels and the misappropriations we have seen thus far, this could be very substantial.”
Apart from the Spearhead matter, there are still two investments relating to Scharrig — one for R1m and the other for R10m — that are being questioned.