Motala: where the fees went

LIQUIDATOR Enver Motala has denied that he or his fellow liquidators had a financial interest in legal and collections costs totalling R74-million in the R100-million Krion estate.

Two weeks ago, in “How Krion estate was pumped dry”, we reported on how R84-million was drained from the estate of one of South Africa’s largest pyramid schemes.

Accounts lodged with the master of the court show legal and collection fees amounted to R74-million.

Liquidators have also filed invoices for R10-million, of which R5-million has already been paid.

We quoted a lawyer who said it was unlawful for liquidators to be paid ahead of creditors.

Motala did not respond to a voice message ahead of publication, but has since responded.

He said some of the legal and collection fees were spent on: interrogating thousands of “investors”, preparing about 2 000 cases for trial, of which 50 landed in court, tracing debtors and quantifying recoveries. A number of high court cases had to be undertaken.

With regard to the R5-million that had been paid out, he said an interim fee was allowed by the master in terms of the Companies Act.

Motala also said in reference to his fraud and theft convictions in 1978 that he did not personally commit the crimes, but took responsibility for them for political reasons.