“Numerous assets” have been recovered during the administration process of the insolvent estate of Classic Financial Services One (Pty) Ltd.
In a letter sent last week, PBP Administrators informed “all affected parties” that the liquidators have started the section 417 inquiries and are investigating various role-players associated with the insolvent estate.
Section 417 of the Companies Act provides that in any winding-up of a company unable to pay its debts, the Master or the Court may, at any time after a winding-up order has been made, convene an inquiry to obtain information concerning the trade, dealings, affairs, or property of the company.
In the letter, PBP curator Jaco Venter stated that, through the provisions of the section 417 inquiries, the liquidators have collected “numerous assets” that had been “dissipated by virtue of impeachable transactions out of the insolvent estate and were successfully recovered to the benefit of the general body of creditors”.
“We intend to make substantial progress with the inquiries in order to collect as much funds as possible for the estate,” Venter wrote.
Classic was wound up (liquidated) by order of the High Court in Pretoria on 30 May.
As provided for in terms of section 97 of the Insolvency Act, if there are no free residue assets in an insolvent estate or when the proceeds of the free residue assets are insufficient to pay all the costs of sequestration, a contribution will be payable. A danger of contribution usually exists in the liquidation and distribution account once it becomes known that there are insufficient funds available to defray all administration expenses. In such case, the concurrent creditors are required to contribute pro rata based on their claim, to settle these costs. However, Venter confirmed there was currently no risk of a contribution being levied on creditors.
“All creditors are advised to complete the required claim form accordingly,” he said.
Criminal investigation under way
Classic and its director, Jacobus Stephanus Geldenhuis, are currently under criminal investigation.
In November last year, the FSCA warned the public “to act with caution” when conducting any financial services-related business with Classic and Geldenhuis.
The FSCA said neither Classic nor Geldenhuis was authorised to provide financial advice or render intermediary services in terms of the FAIS Act.
In October 2022, the Authority conducted a search-and-seizure operation at Classic’s Kempton Park premises. At the time, the FSCA said that evidence collected indicated that Geldenhuis may be conducting a Ponzi scheme.
Read: Criminal investigation into Classic Financial Services and its director gets under way
In July, the National Prosecuting Authority confirmed that the Germiston Commercial Crimes Unit was investigating the dealings of Classic and Geldenhuis. The Enforcement Division of the FSCA also confirmed it had concluded its investigation into Classic “and several people” and was in the process of taking enforcement action against the investigated parties.
Read: Director’s passport blocked amid efforts to recover Classic’s Assets
According to the FSCA, Classic had more than 1 000 clients.
Although it has not yet been shared exactly how much money moved through Classic’s bank documents since it was incorporated in 2004, bank records procured by the FSCA showed that from 1 January 2019 to 31 August 2022, R412 419 440 and R83 513 962, respectively, had been paid into accounts created “for the deposit of investment funds”.
All original claim forms with the supporting documents should be delivered to PBP Administrators’ reception at Corobay Corner, Block A, 169 Corobay Avenue, Menlyn Maine, Pretoria.
Those who require assistance can contact Venter on 082 715 3629 or jaco@pbpadmin.co.za.
