Cape Town - Fidentia Asset Management (Fam) had two insurance policies covering a wide range of losses, the Western Cape High Court heard on Thursday.
There was a banker's blanket bond as well as a director's and officer's liability policy for the period Fidentia boss Arthur J Brown allegedly committed crimes, his lawyer Braganza Pretorius said.
Brown faces nine charges of fraud, theft, corruption and money-laundering, related to Fidentia and several affected companies, between 2002 and 2006.
Pretorius cross-examined Fidentia's ex-broker Steven Goodwin and asked him to look at the policy documents.
Pretorius said the Glenrand MIB banker's blanket bond was for the period May 26, 2006 to February 7, 2007, with retroactive cover from 2004.
It provided R200 million cover per instance of loss, related to risks such as employee dishonesty, electronic securities, and forged cheques.
“[Do you agree that] this [policy] is so wide that if anybody does anything, if a person is dishonest and everything is lost, this would pay out?” Pretorius asked Goodwin.
Goodwin agreed this would be the case.
Pretorius said the second policy was through Santam Ltd and for the period November 29, 2005 to February 28, 2007. It offered cover of R100m.
Judge Anton Veldhuizen asked Goodwin if he could testify on the validity of the policies.
“No. I had insight in that the [policy] document was sent to me at some time. I'm not able to say if this was physically operational”.
Pretorius confirmed he would call other witnesses to back up this information.
Sapa