Ex politician’s son in court to recover millions

THE son of former politician JN Reddy wants back the millions of rand he allegedly lent his father’s since bankrupt company, Sealandair Shipping and Forwarding, in the late 1990s.

Reddy was the leader in the Indian House of Delegates in the 1980s.

His son, Vengeteram Krishnaswami Jayaram Reddy, in court papers filed in the Pietermaritzburg High Court, cited allegations of collusion between the former liquidators.

He alleged that attorney Mark William Lynn, who resigned as liquidator and sub-sequently established Shackleton Risk Management, and his former employee of 23 years, Marlene Retief, who was recently removed as the liquidator by Judge Gregory Kruger, had allowed the winding up process to drag on for 17 years.

Vengeteram, represented by advocate Vishalan Naidu and attorney Vasu Naidoo, alleged that Lynn and Retief had not acknowledged that he had advanced the loans, totalling R3 016 096 during a four-year period in the 1990s, to Sealandair.

Neither had he been listed as a creditor in the financial affairs of Sealandair, he said.

Vengeteram further alleged that the ex-liquidators had concealed two prime commercial properties in Gauteng which belonged to Sealandair.

“The properties, worth millions of rand, were ceded to me as security for the R3 016 096 I had advanced to Sealandair,” he said.

“A cheque for R2.7 million given to me by Sealandair bounced in December 1997. My attorney and I recently discovered that Alnerante Autospray had leased one of the premises to Cargo Motors or Imperial. Despite alerting another liquidator, Graham Perry, as well as Lynn and Retief, the matter was not investigated. It points to collusion.”

He has also taken issue, in correspondence to various parties which forms part of the court record, with why a company known as Cutfin was listed by the liquidators as a creditor, when it allegedly had no dealings with Sealandair when it was solvent.

“It emerged that Shackelton is the alto ego of Lynn and wanted Retief to remain as liquidator. They relied on the power of attorney signed by Cutfin. The power of attorney is dubious,’’ said Vengeteram .

He claimed Retief ’s allegiance lay with Lynn and that she was not working in the best interests of Sealandair.

“It is probable that Lynn is operating backstage in Sealandair’s liquidation. It is submitted that this alone is a good reason for Retief to be removed as liquidator. Retief spoke about Shackleton at the creditors meetings.”

He claimed Retief, Lynn and Perry had failed, refused or neglected to have his claim proved.

It appears that this saga is far from over.

The Master of the High Court in Pietermaritzburg informed Vengeteram by letter that the Special Investigative Unit would be asked to conduct a probe into the affairs of Sealandair.

A liquidated company cannot acquire assets unless (it) has the authority to trade.

In a replying letter, Lynn, said assets that were unknown had emerged.

Retief, in a letter to the Master, denied that she and Lynn or anyone else had colluded with each other.

She said she had in her possession hundreds of copies of minutes to prove that she used Shackelton to attend to all her creditors meetings.