City Capital SA Investors hold their breath as fresh liquidation application was granted...
City Capital SA Property Holdings, has once again been placed in provisional liquidation last week in the Cape High Court. This application follows the withdrawn liquidation that was granted after a retired pensioner Mrs. Elma Taylor from Gaans Baai successfuly placed City Capital into Provisonal Application a few months back. However Mrs. Elama Taylor was convinced by certain individuals and investors to withdraw the liquidation proceedings in lure of getting her investment back and even empty promises of paying her R2000 per month in the interim. But to date Mrs. Taylor has not received any monies after withdrawing the application and is now scared to say anything that might jeopardise City Capital in the hope that she will get back her life savings.
But last week, Edward Nathan Sonnenbergs attorneys successfully brought a fresh application for the company's liquidation in the Western Cape High Court.
Further news is that apparently the remaining board of City Capital directors meet last month to officially resign. They also noted in their resignations that the company has no remaining employees, so then who is at the helm of this so called multi million rand property syndication company that reported to have property portfolios worth over a billion rand late last year?
The company's auditors BDO Spencer Steward, obviously owed huge fees and likely highly embarrassed by it's association have resigned as City Capital auditors. City Capital is now without an auditing firm to keep tabs on the financial mess the company is in.
Official sources confirm that City Capital is unable to pay its debts, including amounts owing for advertising costs incurred by auctioneers, services rendered by property valuers, suretyships for bank loans and the outstanding payments that might be owing to investors. Whom, I may remind you are mainly retired investors like Mrs. Elma Taylor from Gaans Bay. These investors have been lead down a garden path and now are without any hope of getting back any money from their lifes savings.
The High Court rulled that if the appication is not opposed by City Capital or other interested parties by October 13 2009, a final order would be granted and the liquidators would proceed with the winding up of the company.
There is possible hope for investors if they approach the FAIS Ombudsman, who could possibly order intermediaries involved with City Capital to pay back clients investments in their personal capacity. That is if the FAIS Ombudsman finds that the intermediary gave wrong advise with accordance to the FAIS Act. Investors approaching the FAIS Ombudsman will also not have to fork out thousands in legal fees and registered advisers according to the FAIS Act are to carry personal indemnity assurance for this kind event.
The FAIS Omudsman is Mr. Charles Pillai the number is 0860 324766 (toll free) do not hesistate if you are a victim act today.
