SME Bank: New details emerge
Further details of how money was audaciously funnelled out of the Namibian bank have emerged.
The joint provisional liquidators of SME Bank, David Bruni and Ian McLaren, have revealed in their notice of motion before the Gauteng High Court how the N$11.5 million they requested to be frozen in a Peregrine Equity (Pty) Ltd account belongs to the Namibian bank.
These funds, however, were held in the name of Mauwane Kotane, the owner of Mamepe Capital Investments, and not SME Bank.
Kotane, in a deposition before the court, claimed all monies (N$196 million) invested by SME Bank into Mamepe Capital had flowed legally, after the two entities had entered into agreements and a memorandum of understanding (MoU).
He also claimed the money was “safely” invested by Mamepe Capital and that the funds were received lawfully and legitimately.
In their application to have Peregrine's accounts frozen, the liquidators argued that Kotane had in fact given instructions that the SME Bank money be invested in an entity called KE2 Ample (Pty) Ltd, of which Kotane is the sole shareholder and director.
Moreover, the liquidators said KE2 Ample (Pty) Ltd is not registered as an investment house or an asset manager, saying this was yet another example of how SME Bank funds were being dissipated and/or spirited away.
They said they, as the liquidators of SME Bank, have a right to the N$11.5 million because the transfers to Peregrine Equities and KE2 Ample were made by the Namibian bank without any basis and were “totally outside its ordinary course of business”.
SME Bank has also not received any value for the transfers, it was argued.
Kotane claimed about N$188.2 million was invested by Mamepe for and on behalf of SME Bank.
Alleged illicit flow of money
During the commission of inquiry to solicit information on the dealings and transactions between the SME Bank and other entities, representatives of Standard Bank Ltd provided certain bank statements of the Peregrine accounts.
According to these documents, Peregrine Equities instructed Standard Bank to open three accounts for KE2 Ample. On 23 August 2016, SME Bank prepared a request by Kotane for the transfer of N$1.5 million into a Peregrine account held at Standard Bank.
This was reviewed by former SME Bank finance manager, Joseph Banda, and approved by the bank's former CEO, Tawanda Mumvuma, and FNB Namibia did the transfer on behalf of SME Bank.
On 25 October 2016, Mumvuma in writing instructed VBS Mutual Bank to transfer N$10 million of the SME Bank's money into a Peregrine Equities account for KE2 Ample.
It was confirmed that the N$11.5 million was indeed received by Peregrine.
These funds were, on instruction of Kotane, invested and held in KE2 Ample and not in the name of the SME Bank.
The liquidators said given the fact that the N$10 million disinvested at VBS Mutual was transferred to the Peregrine account on the written instructions of SME Bank, it cannot be fathomed how it came about that Kotane gave instructions that the N$11.5 million be held in KE2 Ample, which is his company.
They said there is no evidence that the transfers were legitimate or properly authorised.
They further said Kotane did not once declare that the N$11.5 million was paid into the Peregrine equity accounts, held in the name of his company.
CATHERINE SASMAN
These funds, however, were held in the name of Mauwane Kotane, the owner of Mamepe Capital Investments, and not SME Bank.
Kotane, in a deposition before the court, claimed all monies (N$196 million) invested by SME Bank into Mamepe Capital had flowed legally, after the two entities had entered into agreements and a memorandum of understanding (MoU).
He also claimed the money was “safely” invested by Mamepe Capital and that the funds were received lawfully and legitimately.
In their application to have Peregrine's accounts frozen, the liquidators argued that Kotane had in fact given instructions that the SME Bank money be invested in an entity called KE2 Ample (Pty) Ltd, of which Kotane is the sole shareholder and director.
Moreover, the liquidators said KE2 Ample (Pty) Ltd is not registered as an investment house or an asset manager, saying this was yet another example of how SME Bank funds were being dissipated and/or spirited away.
They said they, as the liquidators of SME Bank, have a right to the N$11.5 million because the transfers to Peregrine Equities and KE2 Ample were made by the Namibian bank without any basis and were “totally outside its ordinary course of business”.
SME Bank has also not received any value for the transfers, it was argued.
Kotane claimed about N$188.2 million was invested by Mamepe for and on behalf of SME Bank.
Alleged illicit flow of money
During the commission of inquiry to solicit information on the dealings and transactions between the SME Bank and other entities, representatives of Standard Bank Ltd provided certain bank statements of the Peregrine accounts.
According to these documents, Peregrine Equities instructed Standard Bank to open three accounts for KE2 Ample. On 23 August 2016, SME Bank prepared a request by Kotane for the transfer of N$1.5 million into a Peregrine account held at Standard Bank.
This was reviewed by former SME Bank finance manager, Joseph Banda, and approved by the bank's former CEO, Tawanda Mumvuma, and FNB Namibia did the transfer on behalf of SME Bank.
On 25 October 2016, Mumvuma in writing instructed VBS Mutual Bank to transfer N$10 million of the SME Bank's money into a Peregrine Equities account for KE2 Ample.
It was confirmed that the N$11.5 million was indeed received by Peregrine.
These funds were, on instruction of Kotane, invested and held in KE2 Ample and not in the name of the SME Bank.
The liquidators said given the fact that the N$10 million disinvested at VBS Mutual was transferred to the Peregrine account on the written instructions of SME Bank, it cannot be fathomed how it came about that Kotane gave instructions that the N$11.5 million be held in KE2 Ample, which is his company.
They said there is no evidence that the transfers were legitimate or properly authorised.
They further said Kotane did not once declare that the N$11.5 million was paid into the Peregrine equity accounts, held in the name of his company.
CATHERINE SASMAN
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