Cape Town - A final liquidation order has been granted against Trilinear Specialised Finance (TFS), which allegedly embezzled the pension funds of workers affiliated to the Southern African Clothing and Textile Workers’ Union.
Yesterday, Western Cape High Court Judge Owen Rogers said there was strong evidence of misappropriation of money by TFS and that it was obvious that the company was unable to repay its debts.
“Trilinear Specialised Finances is factually insolvent and commercially unable to pay its debt.
“For those reasons the provisional order of liquidation was made final,” Judge Rogers said.
Earlier, the court heard that an agreement had been reached in which Sam Buthelezi committed himself to paying a sum of R475 000 to avoid sequestration.
Buthelezi and his co-accused, Richard Kawie, were also previously criminally charged for their alleged involvement in the misappropriation of millions of rands in pension funds.
The R475 000 was related to court orders that were obtained by Judge Bennie Griesel at the Western Cape High Court compelling Buthelezi to attend the Canyon Springs enquiry last year.
Kawie had already made his payments.
Buthelezi has been given until the end of business on Tuesday to make the payment to Hogan Lovell, the international law firm representing the union.
Buthelezi’s lawyer, advocate Fazlin Jakoet, said she had been only recently briefed and needed time to study and prepare heads of argument.
Judge Rogers said the hearing had been dragging and there had been numerous postponements. He said Jakoet had failed to make a formal application for a postponement.
André Kriel, the union’s general secretary said: “As per my mandate, we will leave no stone unturned in connection with our efforts to recover the losses… “
Buthelezi refused to comment on the outcome of the hearing, referring all questions to his lawyers.
The provisional sequestration order has been extended and the final sequestration order hearing postponed to Thursday.
Buthelezi and Kawie are also facing criminal charges of fraud.
They are due to appear in the Commercial Court in Bellville on February 15, 2016 for that case.