No airtime on RSG’s Geldsake this evening

We’ve received word that there was too much on the “story board” at Geldsake tonight and although Herman was on standby, there was just not enough time to get to Sharemax/Nova. We’ll keep you posted as to when tonight’s planned discussion will air

RSG Geldsake this evening

We’ve just received word that there was too much on the “story board” at Geldsake tonight and although Herman was on standby, there was just not enough time to get to Sharemax/Nova. We’ll keep you posted as to when tonight’s planned discussion will air

Herman Lombaard will be speaking on RSG’s Geldsake again this evening

Herman Lombaard will be on air on RSG’s Geldsake with Ryk van Niekerk again this evening. Herman will be giving some background information on the issues surrounding the resignation of the former Trustee (Mr Derek Cohen) and the company’s failure to appoint a replacement within the time frame set down in the Trust Deed. He will also speak on the company’s nominated candidate and why we reject this person and on the candidate whom we have nominated and why we have done so. There might also be content on why we have said to Nova that they have, through their failure to appoint the new trustee at the right time (per their obligations set out in the Trust Deed), they have forgone their right to nominate a candidate and convene a meeting to vote on approval of that person

Important content from our Facebook page

We are putting out some of our Facebook posts on aspects of the proposed January 11 meeting.

This one is on the email announcements of the proposed January 11meeting that members have received via email and how many votes one will have whether at the meeting or via proxies given

To clarify the reason for possibly having received more than one email notification of the Jan 11 meeting:
There are four categories out of the Sharemax closure and the Nova Debenture issuance
The Villa Companies (Villa 1 & 2) plus the Zambezi Company were restructured in terms of Section 311 of the Companies Act
The Malls are styled The Income Plan Companies and the residential developments are styled as the Growth Plan Companies. These were re-structured through the Business Rescue Plan
You will see the applicable category stated in the email(s) received
Therefore, you have a vote in each of the categories for which you have received an email
If you are invested in one of the properties in all four categories, then you should have four emails and you therefore have four votes
This will necessitate that you will give a proxy for each of the categories for which you have received an email
The number of actual debenture certificates that you hold is not relevant. You only get one vote per category that you are invested in

It is also our understanding that each of the categories will be the subject of a separate vote. This is to comply with the legal requirements in the four separate Schemes of Arrangement – one for each category

This is our understanding of the situation right now. If it changes later on we will advise

Meantime, we will communicate the names of two persons to insert in the proxy forms soon. These persons will be at the meeting and will speak and vote for NDCAG members

Please wait for these

We also have to provide you with an email address to which to send the proxies. Although the email address [email protected] <mailto:[email protected]> appears in the proxy form, this is not necessarily the ema to which it should be sent and quite likely, the last one that we want Debenture Holders to send them to

We will advise re this aspect as well as soon as possible

Most Important>>>>>

Thank you

FW: The current happenings with Nova Property Group

We have been inactive in the operation of this site for a good while and apologise to registered members for this

The Email announcement of the planned January 11 meeting to approve the appointment of the company nominated new Debenture Trust Trustee, together with the background happenings with the CIPC and their Compliance Notices has revived us because it presents such a wonderful opportunity to engage with Nova – an opportunity that might not come again

We have much information to post in the web site but have been posting in our Facebook page on an ongoing basis. To access the Facebook page, please Google Sharemax Investors. In the results you will find a search result reading: < ure-Creditors-387000062051144/> Sharemax Investors/Nova Debenture Creditors – Facebook. In that page you will all our recent posts

This evening, on RSG’s Geldsake at 1810 (Fm 100 to 104) the latest developments will be featured with Ryk van Niekerk talking to Herman Lombaard of our operating committee, and possibly also, Deon Pienaar – a long time crusader against all the wrongs in the Sharemax close down and Nova and the debentures

Ryk has also invited Dominique Haese, CEO of Nova, to join the discussion although at this time we do not know if she will

More information and news postings will follow over the coming days

We will be posting the RSG podcast on tonight’s program in due course

Maroelamedia se pos or die NVG se Afriforum/Nova besluit

When viewing this post in the NDCAG web site, click on the title to open it and then click on the hyperlink to access the text in the Moroelamedia web site

This post won’t be available in English

We’re assuming that it won’t lodge behind a paywall but if it does, we have a copy that we can post if/when it becomes unavailable via the above link

NPA decides not to freeze Nova’s assets

Moneyweb: Author: Ryk van Niekerk  2 Sep 2020  

AfriForum says decision is ‘irrational’ and ‘incongruous’

Former state prosecutor Gerrie Nel, representing AfriForum, maintains that an asset forfeiture intervention is required since other safeguards have failed investors ‘dismally’. Image: Phill Magakoe, Reuters
Former state prosecutor Gerrie Nel, representing AfriForum, maintains that an asset forfeiture intervention is required since other safeguards have failed investors ‘dismally’. Image: Phill Magakoe, Reuters

The National Prosecuting Authority (NPA) has decided not to freeze the assets of the Nova PropGrow Group, the rescue vehicle of the failed Sharemax property investment scheme.

The decision follows civil rights movement AfriForum asking the NPA in June to seize Nova’s assets on the basis of the South African Reserve Bank’s 2010 finding that Sharemax had contravened the Banks Act.

AfriForum said this was a criminal offence, meaning that Sharemax had acquired the properties with the proceeds of crime.

The Reserve Bank’s finding triggered Sharemax’s collapse. Nova was then established through a Section 311 Scheme of Arrangement (SoA) to take ownership of the properties and to repay investors. AfriForum contends that the SoA does not remit Sharemax’s contravention of the Banks Act, and that Nova acquired assets that were procured with proceeds of crime.

AfriForum labelled the NPA’s decision not to freeze Nova’s assets “irrational and incongruous” and asked Shamila Batohi, national director of public prosecutions, to take it on review.

Moneyweb is in possession of a letter the NPA sent to AfriForum in response to the request to freeze Nova’s assets.

In the letter Advocate Rodney de Kock, deputy national director of public prosecutions, motivated the NPA’s decision. He also acknowledged that the Hawks had handed the case to the Gauteng division of the Director of Public Prosecutions for a prosecution decision and that Nova, through its attorneys, submitted “representations” in response to AfriForum’s action. (Moneyweb has not had sight of this letter and has asked the attorneys for a copy. At the time of publication, it had not been forthcoming. However, Nova issued a press release in response to the AfriForum claims shortly after the original announcement).

De Kock stated that the court sanctioned the SoA and that the Reserve Bank supported the scheme. “As a result of this there appears to be no ‘illegality’ as the companies and their underlying assets taken over by Nova complied with the Banks Act and can therefore not be regarded as assets acquired from the proceeds of crime.”

He added that Nova continues to sell properties and “they have already sold a large number of the properties”.

De Kock also said that if the NPA froze the assets, the NPA would merely assume the functions of Nova.

“The purpose of Nova is to compensate the investors who lost their money. The purpose of any possible asset forfeiture intervention, at this stage, will be exactly the same,” said De Kock.

“The NPA/AFU [Asset Forfeiture Unit] will therefore be assuming the functions of Nova at great expense to itself.”

AfriForum’s response

In response, Advocate Gerrie Nel, head of the AfriForum Private Prosecution Unit, wrote directly to Batohi and called for a review of the NPA’s decision not to freeze Nova’s assets.

“The entire Sharemax investment scheme was declared illegal following proven transgressions of the Banks Act … During 2012 all the property-owning companies promoted by Sharemax were transferred to and became part of Nova Properties. The Nova scheme cannot absolve the contravention of the Banks Act by Sharemax,” he wrote.

“We feel strongly and consider this an aspect that perhaps did not get the attention it deserves and we, therefore, reiterate that if the original funds were procured through criminal conduct it remains proceeds until restitution is made to the victims.”

Nel said AfriForum’s argument “may seem crude, but the principle is stark that the Reserve Bank cannot condone criminal conduct or affect the reality that assets were procured with the proceeds of crime.”

Further, De Kock’s argument that the freezing of Nova’s assets would result in the NPA and AFU assuming the functions of Nova “escapes us”, said Nel.

“The NPA is obliged and equipped through the AFU to take action concerning the proceeds of crime. We argue that a Chapter 6 asset forfeiture intervention is required in the interests of justice and protecting the rights of the investors since the other safeguards have failed them dismally to this point,” Nel wrote.

Nel also criticised the delay in the decision to prosecute.

“An inference is possible that the delay to prosecute the directors of Sharemax is not only inexplicable but may contribute to the dissemination of assets by the board members of Nova which may, in turn, deprive the investors of their investment funds for an extended time.”

(NDCAG Comment: the letters referred to above will be posted separately)


Disclaimer and entry/usage Terms and Conditions (T&C)

By clicking the “Agree” button below and entering this site, you agree that the material contained herein is for information purposes and is for the personal use of and by bona fide users (being registered Nova Debenture Creditors or their bona fide representatives) only

You also confirm that you are a Debenture Creditor or a bona fide representative of same  

If you are not one of the above you are not entitled to enter this site or to access or use any of the information contained in it and should exit the site immediately

The website will be continuously updated and/or reviewed and its content will be relevant to bona fide NDCAG matters only (but allowing for the posting, sharing and archiving of information relevant to other property syndication issues and action groups) and used only in connection with the NDCAG agenda as may be published and changed from time to time

The content is subject to change without prior notice. The unauthorised use or interception of material, data, information or documents on this website is strictly prohibited and illegal. If this website is not intended for you, you may not copy, distribute or disclose the contents to anyone. The aforesaid is done entirely at your own risk, for which NDCAG and/or any of its agents, nominees or members, shall not be liable.

Any usage that you make of information herein and/or any reliance that you place on same is also strictly at your own risk.

No content in this website implies, states or should be construed as, an undertaking, commitment or guarantee by NDCAG to obtain repayment of amounts invested by anyone, in the former Sharemax property syndication products and which investments are now in the form of Nova Debentures issued in terms of the November, 2011 Schemes of Arrangement