Durban - The former managing director of The Natal Witness Printing and Publishing company, Gregory Orsmond, did not oppose his estate being placed under final sequestration in the Pietermaritzburg High Court on Thursday.
A provisional order had been granted early this month and Orsmond had been given time to say why it should not be made final. He did not respond.
The application had been brought by Sky Blue Media, a subsidiary of The Witness, which is a subsidiary of Media24.
It had been alleged in court papers that the company was owed more than R10 million by Orsmond and that a sequestration would allow a trustee to investigate the affairs, assets, liabilities, income and expenditure of Orsmond’s estate.
Sky Media understood that Orsmond, who lived in Shelly Beach, had used a significant portion of the funds he allegedly misappropriated to construct and maintain stables on property owned by a third party. Thus the estate may have a claim against the third party for unjustified enrichment, the proceeds of which could be used to the advantage of creditors.
The sequestration order was to fulfil a judgment granted against Orsmond last year for R10.1m on the basis that when he was a director of Sky Blue the company lost that amount “as a result of reckless or grossly negligent conduct and/or fraudulent conduct”.
His conduct included the misuse and/or abuse of his position, in that he unlawfully authorised payment on behalf of the company to entities in which he had a personal interest, and/or bank accounts, held or controlled by him. - The Mercury