Fast little loans
The Western Cape High Court this week placed under provisional curatorship Rockland Group Holdings, Rockland Asset Management and the Rockland Targeted Development Investment Fund (TDIF), in which six retirement funds have invested R513 million.
The Financial Services Board made the application because it fears that the retirement funds could face substantial loses: TDIF’s single-biggest asset is a barren stretch of 485 hectares of wind-swept sand dunes on the Cape Flats.
In May 2007, Rockland Group’s controlling director, Wentzel Oaker, with two others, took transfer of the property for a purchase price of R36 million. Within a year, 80 percent of the ownership was sold to TDIF for a “discounted” R260 million. The money was raised from six major industrial retirement funds. The property has now been valued at more than R800 million.
Next week, Personal Finance will look at why members’ retirement savings have yet again been placed at risk when trustees and an army of consultants should be protecting members from high-risk and faulty investments.