Avid N$30 Million Fraud Case Postponed Again

Werner Menges

3 June 2011

THE case of the seven people accused of defrauding the Social Security Commission through a N$30 million investment deal in early 2005 was placed back onto the High Court’s pre-trial roll on Wednesday.

The trial of the seven was supposed to start in the High Court in Windhoek on Wednesday and to run until the end of July. With a judgement on the constitutionality of a section of the Criminal Procedure Act that relates to fraud charges still awaited from the Supreme Court, the trial did not start as planned, though.

The case was instead postponed to July 28, when the seven accused persons have to make a further pre-trial appearance in the High Court to hear if a new trial date has been set yet.

National Assembly member Paulus Kapia, Nico Josea, Ralph Blaauw, Sharon Blaauw, Inez /Gâses, Otniel Podewiltz and Mathias Shiweda are all charged with a count of fraud, alternatively theft, and a charge of reckless or fraudulent conduct of business, which is a contravention of the Companies Act, in connection with an SSC investment of N$30 million that was placed with an asset management company, Avid Investment Corporation, and channelled to another asset management company, Namangol Investments, in January 2005.

The money was supposed to be repaid, with interest, after four months. Avid was not able to repay the money to the SSC, though, and as a result the SSC went to the High Court in July 2005 to have the company liquidated.

Kapia, /Gâses, Podewiltz and Mrs Blaauw were directors of Avid, and also face six counts under the Companies Act in which they are accused of having failed to carry out their duties as directors, such as keeping proper records of the company’s business.

The seven are all further charged with having given false evidence at a Companies Act enquiry into the financial collapse of Avid that was conducted in the High Court in July and August 2005. Podewiltz alone is charged with corruption for having allegedly received a payment from the late Lazarus Kandara, alleged founder of Avid, while Podewiltz was employed with the Ministry of Labour.

In the indictment against the seven that has been filed with the High Court it is alleged that of the N$30 million that the SSC transferred to Avid to be invested, N$29,5 million was transferred to Namangol Investments, which was owned and run by Josea.

Of this money, some N$14,9 million landed in Josea’s personal bank account in mid-March 2005, and he went on to deal with the money as if it was his own, it is also alleged.

By late June 2005, it was claimed during the Companies Act enquiry in the High Court, there was only some N$46 000 left in Josea’s account.

Josea has been claiming that the money paid to him was not part of the SSC’s funds, but was the result of a settlement reached in a dispute between him and the supposed investment broker in South Africa to whom Namangol Investments had paid N$20 million of the SSC’s money earlier on.

Josea was charged while the Companies Act enquiry was in progress in July 2005. His six co-accused were charged in April 2008.

The seven all remain free on bail pending their return to court.

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