AfriForum’s private prosecution unit has its sights on the NPA for its lack of action in the protracted Sharemax debacle in which mainly older investors lost billions of rands in the property syndication.

According to a report in Die Burger, Advocate Gerrie Nel is preparing an application to review the NPA’s decision apparently taken in May 2021 not to apply for the preservation of assets. 

AfriForum believes the decision is irrational.

A new company, Nova, was created a decade ago as part of a court-sanctioned arrangement to attempt to recover some R4.6bn of investments and pay out investors after 10 years.

The board of Nova recently announced that the debenture holders will not be refunded upon expiry of the 10-year-period.

AfriForum said it provided a draft application to the NPA in 2020 to obtain a preservation order of existing assets as it believes the assets are proceeds of crime.

‘The NPA based its decision not to act on a report by a senior advocate. We want to see that report as the NPA has failed – for more than a decade – to institute any prosecutions and no refunds of the original investments or dividends for investors have been made,’ Nel said.

Full report in Die Burger (subscription needed)