Nine months after 3Sixty Life has been placed under interim curatorship by the Gauteng High Court (Johannesburg), Judge Fiona Dippenaar ruled that the insolvent funeral insurer, owned by the National Union of Metalworkers of SA (Numsa), should be put under final curatorship.

‘There are no preferable alternatives to curatorship’, wrote Dippenaar, who found that the Prudential Authority (PA) had shown that its concerns about the state of 3Sixty Life ‘are legitimate.’

GroundUp report notes Yashoda Ram was removed as interim curator, and Tinashe Mashoko of BDO Advisory Services – Ram’s former employer – was appointed as the final curator.

Dippenaar found that 3Sixty Life failed to address its many statutory breaches or its governance issues, and had not presented an acceptable recapitalisation plan to the PA.

She found that the evidence of 3Sixty Life’s ‘statutory transgressions’ and unsound financial position had not been disputed or refuted by the company.

Dippenaar said Ram’s conduct ‘can best be described as prejudicial, belligerent and erratic … in numerous respects Ms Ram was acting in her own interests, rather than in the interests of the policy holders.’

Ram ‘did not investigate nor fully report’ on the regulatory breaches and governance issues, and her views ‘are not supported by objective evidence and are of limited assistance to the court.’

Ram’s reports and affidavits did not give ‘a cogent factual basis or proper logical motivation for her views or her fluctuating opinions.’

Dippenaar found that replacing Ram with Mashoko would be in the best interests of 3Sixty Life’s policyholders.

Full GroundUp report