Financial Intelligence Centre ‘freezes’ BHI Trust bank account

The Financial Intelligence Centre (FIC) has temporarily “frozen” just under R5 million held in a Nedbank account in the name of BHI Trust.

In a circular sent to creditors on 2 November, the court-appointed joint provisional trustees (JPTs) – Gert de Wet and Sumaya Mohamed of Kaap-Vaal Trust – stated that the bank account in question, which holds R4 785 164.96, was attached on 25 October.

“The attachment directive has been set for the period 27 October 2023 until 9 November 2023. The JPTs has in the interim requested Nedbank to pay these funds over to BHI Trust’s estate account,” the circular read.

It added that no further financial information or the possibility or percentage of possible dividends and recovery of investments could be provided at this early stage.

Just over two weeks ago, Craig Warriner, the fund manager and a trustee of BHI Trust, handed himself over to authorities. He allegedly admitted to using the trust’s funds in a highly irresponsible manner, referring to it as “using the funds of Peter to pay Paul”, a practice that allegedly began after the 2008 global financial crisis.

Read: BHI Trust: The walls start tumbling down

On 25 October, the trust was placed under provisional sequestration by the High Court in Johannesburg. The Master of the High Court appointed De Wet and Mohamed as the JPTs on 30 October.

The court has set a return date for the final sequestration of the trust for 7 February 2024. However, the JPTs said the intermission would not hamper their recovery of assets or funds.

Warriner, who is the subject of investigations by the National Prosecuting Authority (NPA) and the FSCA, is being held in police custody with his next court appearance set for 29 November.

Read: Complaints lodged against BHI Trust date back six years

The JPTs said they were trying to establish contact with both the NPA and FSCA to determine “a workable and sensible resolve with respect to the various legislations involved for the benefit of all affected parties, especially the affected investors, which could possibly affect the administration of the insolvent estate”.

In the meantime, a designated website – www.insolventbhi.com – has been created to communicate with affected parties, investors, and creditors, “given the magnitude of the investors/creditors and funds involved”.

In terms of section 44 of the Insolvency Act, all investors/creditors in an insolvent estate can submit a claim form, which will be submitted for proof at statutory meetings of creditors for proof for such investors/creditors to be included and to receive a dividend when such dividend becomes due and payable.

These claim forms can be downloaded and digitally submitted via the designated website.

In the circular, the JPTs requested all investors and creditors to complete the online claim form and to email an electronic copy to claims@insolventbhi.com to register.

Investors and creditors need to note:

• The claim constitutes an affidavit and, as such, the original must be delivered to the address of Kaap-Vaal Trust, whereafter the claim will be presented as proof during the statutory meetings as prescribed by the Act.
• In respect of investor claims, the original claim form must be accompanied by the last statement received from the investor’s broker, because the claim amount is limited to the amount due and payable to the creditor as of 24 October and can be substantiated by way of documentary evidence.

The JPTs added that the statutory creditor meetings during which claims are submitted for proof are chaired by either the Master of the High Court or a magistrate; as such, the acceptance or rejection lies in the hands of a third party.

“We, as JPTs, can only attempt to assist investors/creditors by ensuring that the claim complies with the prescribed forms and formalities in order for such a claim to be decided on during the statutory meeting.”

Investors and creditors are advised to submit their original claims before 25 January 2024, keeping in mind the 7 February court return date.