Business Maverick: Old Mutual Unit Trust Managers found liable for R1.7-billion loss related to Fidentia scandal

The South Gauteng high court this week found Old Mutual Unit Trust Managers liable to pay R1.7-billion to the Living Hands Umbrella Trust following the losses the trust suffered in the Fidentia fraud scandal more than ten years ago.

In a 62-page ruling, Judge Thina Siwendu said it was clear that Omut acting as the administrator was the owner of the investment portfolio, acting administratively for the trust and its beneficiaries. She found that as such, Omut owed a direct duty of care to the trust on whose behalf the assets were being managed.

About 80% of trust assets or R860-million held on behalf of beneficiaries of deceased members of the Mine Workers Provident Fund was squandered after Fidentia, led by criminal mastermind Arthur Brown, took control of the trust administration company. Brown waslast year after serving seven years of a 15-year sentence.

Omut should reasonably have known or suspected that Fam did not have the authority of the Matco Trust to present correspondence to Omut and that Fam had not been appointed as investment manager nor had it received an investment mandate.

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Business Maverick: Musk’s debt bankers would avoid steep losses if deal failsUnderwriting losses would be partly offset for Morgan Stanley, Bank of America, and Barclays, which provided fees for M&A advisory services to Musk. Four other banks that only provided the debt – MUFG Bank, Mizuho, BNP Paribas SA, and Societe Generale SA – risk going deeply into the red if the deal goes ahead.
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: The global energy crisis may get worse, IEA’s Birol warnsShortages and power and fuel price surges are affecting the world, the International Energy Agency said. And we haven't seen the worst of it yet. Yeaaah! And guess what? We're all going to end in a massive implosion. Now, since we're all this stupid and allow for politicians and lawyers to do as the please, can we rather get on with proper, impenetrable solutions? And write about it? And f*kc these so called le💩ders!
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: Property funding model in danger as ECB’s easy money era endsThe property market, which was at the centre of the global debt crisis in 2008, is once again looking like a driver of pain in bond markets.
Source: dailymaverick - 🏆 3. / 84 Read more »