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Transport Education Training Authority ("TETA")

Transport Education Training Authority ("TETA"). Fidentia Curatorship. Investment Mandate required Fidentia to invest TETA funds with A-Rated Financial Institutions. Mandate and Investment concluded by TETA Piet Bothma and with board approval.

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Transport Education Training Authority ("TETA")

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  1. Transport Education Training Authority ("TETA") Fidentia Curatorship

  2. Investment Mandate required Fidentia to invest TETA funds with A-Rated Financial Institutions. • Mandate and Investment concluded by TETA Piet Bothma and with board approval. Investment made in Tranches totaling R2.3 million placed with Fidentia

  3. TETA received from Fidentia and Arthur Brown monthly statements showing Investment Growth. Fidentia Curatorship

  4. TETA requested a tranche repayment. • Fidentia repaid R15 million to TETA. • Balance of R185,3 million remained invested with Fidentia. • No further repayments made by Fidentia to TETA despite repeated requests. Fidentia Curatorship

  5. Submitted claim to Curators for R185.3 million. • Curators approved claim of R185.3 million. • First distribution account – curators paid to TETA R33.37million. • Expect further payments from second distribution to be paid by curators in due course. • Curators still to sell a number of assets, for example, SANTE Property in Paarl. • Curators are still litigating and one substantial claim is for R104 million. • Curators will be filing further reports with court and FSB and next report due in July 2013. Fidentia Curatorship

  6. Graham Maddock and Steve Goodwin convicted and serve prison terms. • States case against Piet Bothma is part-heard and continuing. • Arthur Brown pleaded guilty to fraud charges in respect of TETA and MATCO. • Received a sentence of a fine and State is appealing. • TETA assisted prosecution and gave statements: DalpatNaran, TETA'S former chief financial officer.testified for the State in the Brown prosecution. Criminal Prosecution

  7. Evidence by Naran was that TETA had suffered a loss of R185 million due to investment mandate not being carried out. • Funds was misused and no investments made as per mandate. • Fraudulent Conduct. • Evidence from Madock was that allegedly Fidentia had paid R6 million and that Bothma had benefited from such payments. Criminal Prosecution

  8. TETA suffered a loss but has carried out its mandate all be it with lesser funds. • R33.37 million recovered from curators are being applied towards training. Fidentia Curatorship

  9. The TETA board has approved the utilization of the R33.3m recovered from Fidentia for the International Leadership Development Programme (ILDP).The beneficiaries within the programme are the stakeholder employees within the transport sectorThe roll out process to this programme has already begun for the benefit of the 8 sub sectors. Fidentia Curatorship

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