Willie Botha, MD of Sharemax Resigns
Sharemax managing director Willie Botha has been relieved of his daily management duties. He has also resigned as a director of Sharemax Investments.
Botha has been assigned to a "special project" which has been described as "very time consuming and comprises, amongst others, legal action that has to be undertaken against individuals who have caused harm to" Sharemax, its financial advisers and investors.
The news was delivered to Sharemax role players by newly appointed chairman André Brand earlier this week. In a memorandum, Brand identified "irresponsible and inaccurate" journalism in various media.
The announcement comes in the wake of a Reserve Bank finding that Sharemax's share- and debenture-structure is illegal. Recent media reports have also questioned the ability of properties sold by Sharemax to earn enough money to deliver the returns that investors were promised.
In a cover story, Finweek recently reported that Sharemax's Zambezi and The Villa - it's two largest syndications - would have to earn gross rental income of more than R400 per square metre per month for it to satisfy interest and dividend payments to investors. Journalist Vic de Klerk noted that Hyprop, South Africa's unquestioned leader in the field of large and luxury regional shopping centres, received less than R175 per square metre per month in its most recent financial year.
Sharemax has yet to issue a counter to these simple calculations, despite repeated requests from Realestateweb for it to do so.
It is typical for Sharemax to threaten legal action against people who raise concerns about its business model. One of its most recent targets is forensic accountant Andre Prakke, who has been informed by Sharemax's lawyers that the syndication company will sue him.
Cipro records show that Botha has also recently resigned from a number of its syndication companies, including:Benoni Hyper, Berg en Dal Residential Estate, Carletonville Centre, Centurion Hazel, Country View Retirement Village, De Marionette Centre, Liberty Mall, Mont Rouge, Oxford Gate, Range View Shopping Centre, Rivonia Square, Sharemax Platinum One and Two, Zambezi Retail Park, Steenbok Crossing, Stonewood Country Estate, Tarentaal Centre, The Villa, The Village, Theresapark Retirement Village, Witbank Highveld and Whale Rock.
Write to Julius Cobbett: julius@moneyweb.co.za
