Cape Town - A court needs to appoint a new curator for Fidentia, the financial services company said on Thursday.

“Now that Dines Gihwala has resigned as a curator, the Financial Services Board (FSB) will need to approach the court regarding the appointment of a new curator,” Fidentia said in a statement.

“The court will be approached by application where we will recommend a new curator, but it is up to the court to decide.”

Gihwala resigned from his position last month.

As Gihwala had been appointed by the Western Cape High Court, it was up to the court to cancel the appointment. He was appointed on February 1, 2007.

“On the same day that Mr Gihwala tendered his resignation as a curator of Fidentia, the FSB became aware of a decision handed down by the high court which contained adverse findings against Mr Gihwala,” Fidentia said.

The company did not elaborate on the findings.

Gihwala had served as a joint curator for Fidentia alongside George Papadakis. Fidentia said Papadakis was still its curator.

“The FSB is aware of the recent media statements linking Mr Papadakis to the allegations against Mr Dawood Seedat,” said Fidentia.

“By virtue of the fact that curators are appointed by the court, the court will have to consider how to respond should the allegations prove to have substance.”

Seedat resigned as the FSB's chief financial officer following allegations of corruption last month.

Fidentia was placed under curatorship following fraud involving its former boss J Arthur Brown.

In May last year the Western Cape High Court fined Brown R150 000 and gave him a suspended prison sentence for two fraud convictions.

This related to his handling of investments for the Transport Education and Training Authority and the Mantadia Asset Trust Company between 2002 and 2006.

Sapa