Hawks probe Enable Capital funding ‘scam’
Some of SA’s major asset managers, who were seemingly conned of more than R700m in short-term funder Enable Capital's alleged funding scam, are scrambling to hide their losses and their association with the firm.
News24 reports that some of the country's largest fund managers, who control trillions in pension savings, fell victim to the scheme.
News24 reports that these include local blue-chip investors Sanlam Investments, Prescient, Old Mutual Alternative Investments, and global fund managers Mason Global and Westbrooke Partners.
Enable Capital – a SMME funder led by Reuben Olifant – was placed in business rescue on 19 November after it ran into difficulties following the alleged misappropriation of funds.
This was less than two months after PIC invested R100m with the short-term funder. The funds allegedly vanished within five days after the transfer.
The PIC is the country's largest fund manager, investing more than R3trn on behalf of the Government Employees Pension Fund.
The PIC last week confirmed that it had charged the company and its directors with fraud, theft, and corruption.
Enable Capital's business is to advance short-term loans to SMMEs against invoices they hold for work on contracted projects, which eases their cashflow burden.
It has been focused on filling the funding gap for small contractors laying fibre networks across the country.
The Hawks acknowledged the PIC's complaint and one by Terrence Kommal, a director of SA Veterans Investments, ‘which are both still at the initial stage’.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
