DEAR CHIEF MASTER
Liquidation Man 2
Liquidation Man 2 takes you into the period July 4, to July 18 2016, where the decision to separate the many issues into smaller issues takes place. Will it work?
During the past seven years, in the ‘corridors’ of the Chief Master’s Office, I have seen Liquidators carrying files, 10 to 15 mm thick, loaded with the required information, the Liquidator in the Grace matter, will carry two of these, the Chief Master will possibly have more, but who reads these documents.
Grace has submitted ten submissions, calling for an investigation.
When Grace first approached the Deputy Master, to discuss a claim from the Security Bond, that the Master holds, she was told that, the Chief Master would not entertain such claim, unless she has can prove maladministration, and missing funds.
During November 2015 and December, she submits a claim for ‘damage compensation’, based on the financial losses suffered, as the result of maladministration, and shows where the ‘missing funds’ takes place.
The Chief Master commences a Section 381 (1) enquiry, into our complaints against the Liquidator.
On February 11, 2016, the Liquidator pays Grace, an amount of R 445 537,09, such amount being the Section 89 costs due, in the process, the Liquidator attempts to get Grace to waive all claims for damages, Grace endorses the waiver document, claiming the agreed, ‘in duplum’ interest settlement with the Liquidator, such agreement made on September 10, 2015, and giving the Chief Master notice that Grace intends to continue the damages claim.
February 17, 2016, with the cheque safely cleared, Grace writes a Final Demand letter to the Liquidator, giving him an option to pay the amount of R 445 537,09 or alternatively, face a claim for damages, at the 15,5% p.a. rate, that he levied the purchaser of the Liquidated Asset.
In this letter Grace again puts all the allegations on the able, copying the Chief Master and the Public Protector, requesting copies of documents, if the Liquidator wishes to challenge our allegations.
The copy to the Chief Master, achieves success, as copies of the Estate bank account, are released.
These copies, and what we will refer to as a ‘hand-full of papers’, confirms all the Grace allegations, at least, to Grace.
Having given the Liquidation Process the number of days, times two, for a response, processed the bank statements, and the ‘hand-full of papers, Grace writes to the Chief Master, June 15, 2016;
By July 2016, some eight months later, not a comment is received, with regard to the very serious, and criminal allegations.
Grace refers to this silence, as pretermitting, ignoring, keeping quite, hoping that the issue will disappear.
Liquidation Man, declares his ‘Independence’ on July 4, becoming independent by default, the corridors of Justice and Investigation, are too busy ‘investigating’ the ANC Government’s maladministration, to look to the endemic corruption, at the lowest level, the sector, where we are able to see the individuals, the private individuals, and companies, that helps to drive, the Government Department’s corruption.
Liquidation Man delivers a letter, July 4, with two attachments, (Doc 4 & Doc 5) and in one of the brief moments of interaction with the Deputy Master, she undertakes to refer the matter to the Liquidator, and will give him 21 days to respond.
21 days is 21 working days, a month!!
The letter is addressed to the Chief Master, he requires the Chief Master to respond, and the Chief Master has every document on file, there is no need for 21 days.
Liquidation Man decides to attack, he starts to write daily letters to the Chief Master, requesting the Chief Master to respond to each, small complaint, individually:
The Estate First Liquidation and Distribution Account carries an amount of R 2 550 197,14, carried forward to the Second Account, such amount disappears, unaccounted for.
Liquidation Man’s reconciliation, shows that two irregular amounts, one of:-
1: R 1,5 million, part of the R 4,0 million, ‘part-payment’ on the sale of the asset, has not passed through the Estate Account.
and another one of:-
2: R 1,5 million, according to the records, paid to the name of an appointed Attorney, on Cheque 5, which never forms part of the First Account.
The manipulation and maladministration is frightening
These are a contravention of Sections 70, 71, & 72 of the Insolvency Act 1936-024
These are a contravention of Section 394 of the Companies Act, -1973.
Both SARS, and the Chief Master’s Office are on record of asking where this money is?
Liquidation Man maintains his attack on the unaccounted for R 3,0 million, pointing out to the Chief Master that his Office, asked all the necessary questions about the missing R 2 550 197,14, carried forward to the Second Account, does not seem to have a satisfactory answer, yet allowed the Second L&D to be confirmed.
Liquidation Man asks the Chief Master to give an update on the section 381 (1) enquiry, started in January 2016, and suggesting that, the unaccounted for R 3,0 million, on the First Account, should warrant the removal of the Liquidator, not just from this Estate but throughout the National structures.
Liquidation Man moves the process along to the admission that the Liquidator had used the ‘wrong sale agreement’, and instead of allocating R 4,5 million to the part-payment of the asset, and R 1,5 million to interest, all R 6,0 million, was deemed to be a capital part-payment, avoiding the normal tax accrual of 30@ on the R 1,5 million.
The Liquidator admits to this tax avoidance, but as yet, the Liquidation System, does not do anything to move the R 450 000,00 back into our tax system.
The Liquidator, for those who understand the Liquidation Process, not only uses an amount of R 701 000,00 of the Estate’s Account for his own company benefit, but he presents it as outstanding, in his first Second Account submission in July 2009, then again in the Confirmed account, October 2010, and according to us, he has still not repaid these advances.
Part of this R 701 000,00 is a slice of the unaccounted for pie, and taken when, the conspiracy had decided to financially cripple Grace.
Liquidation Man challenges an amount of R 400 000,00, paid to a subsidiary company of the legal firm, appointed by the Bank, Creditor 2, and paid through the court process, and, by the Creditor. Grace alleges that this amount, as the amount removed by the Liquidator, in his Refunds payable, is part of the ‘distribution pie’.
The VAT Refund claim, shows the maladministration, that identified the main tax avoidance, by the Conspirators.
The Liquidator, November 2010, claiming that there are insufficient funds to pay the Grace, section 89 costs, and encourages Grace, to accept a discounted ‘negotiated settlement’ of R 355 000,00, due and payable within two to six weeks.
This settlement undertaking, is linked to the concept that the application for the Refund of R 355 000,00, from SARS, as per the Confirmed Second & Final Account, had already taken place.
The Liquidator, first submitted, the Second Account, in July 2009, yet, the paper-trail, in the possession of the Chief Master, reveals that the Liquidator only submits the claim in November 2011.
Over eleven months, of interaction with SARS, the Liquidator, in October 2013, eventually admits guilt, apologising to SARS, for having used the ‘wrong sale agreement’.
This wrong sale agreement is the basis on the avoidance of 14% VAT, payable on the R 8,5 million, equal to, R 1,05 million, and the allegations of the missing R 10 million, bringing the total alleged tax avoidance to R 3,2 million.
Once again, Liquidation Man asks the Chief Master to answer for the Grace allegations of the alleges tax avoidance of R 3,2 million, though the use of the wrong sale agreement, and maladministration.
As the July 14 letter, addresses the tax avoidance allegations, Grace again tables the email from the Creditor’s Attorney, L&M, dated October 1, 2013.
This email, responds to a request from the Liquidator, to disclose all monies collected by the Attorney.
Grace alleges that the R 10 million, is hidden in this part of the Administration.
Included in this covering email, is a notice that Liquidation Man would deliver the hard-copies of the above letters, and another invitation to meet the Chief Master, National Office.
Liquidation Man, is not really phased, when neither the Deputy Master, or the Assistant Master, are not available to receive the hard-copy, but while we wait the hour, the Deputy Master, emails Grace as follows:
Ms S is working through your letters systematically and compiling a report as she is progressing.
Our report will thus be finalized shortly after you have raised all issues.
We prefer to provide you with one report after receiving all your concerns in order to enable us to approach the matter in an orderly manner.
We trust that you find the above in order.
In the letters to the Chief Master, Liquidation Man, questions the Chief Master’s Office, with regard to the administration failure, which allows the R 3,0 million unaccounted for, in the First Account, the R 701 000,00, not repaid by the Liquidator, the Wrong Sale Agreement, the VAT issue, the tax avoidance issue, to take place, and then, the Junior staff member, is tasked with reporting on the letters?