BHI Trust’s joint trustees start the process of recovering investors’ money

Investors burnt in the BHI Trust saga may be sorely disappointed after a circular from the provisional court-appointed trustees this week revealed that BHI Trust’s official bank account holds just R4.8-million.

The joint trustees, Gert de Wet and Sumaya Mohamed, confirmed that as of 25 October, all that was left in the account was R4,785,164.96. The total amount invested was at one stage thought to be around R2.7-billion.

The account has been temporarily frozen by the Financial Intelligence Centre until 9 November, and the trustees have asked Nedbank to pay the funds over to BHI Trust’s estate account.

At this stage, the trustees have only just begun their investigation and it is unclear whether there is more money to be recovered, possibly in other bank accounts or investments. The return date for the final sequestration of the trust is set for 7 February. However, as per the circular, the February date is not expected to hamper the trustees in the recovery of assets and/or funds, which vest in the trust by way of various provisions entrenched in the Insolvency Act to the advantage of the investors and the general body or creditors.   

All claimants are advised to submit their original claim affidavits in writing before 25 January 2024. As per a statement by Cawood Attorneys, who brought the provisional insolvency application earlier this week, the trustees reiterated that their appointment is in its infancy as is the formal investigation.

Because the BHI Trust and at least one trustee — Craig Warriner — are also the subject of a Financial Sector Conduct Authority and National Prosecution Authority exploration, the administration of the insolvent estate of the trust could be subject to various other legislation associated with the financial sector.

To facilitate transparent and clear communication with all registered investors and creditors, and to capture all the claims, the trustees have established a designated website for all circulars and updates pertaining to the trust. Although the site will facilitate the submission of claim forms, the original claim form (affidavit) must be handed in to Kaap Vaal Trust before 25 January.

The original claim form must be accompanied by the last statement received from the investor’s broker, as the claim amount is limited to the amount due and payable to the creditor as at 24 October 2023 and can be substantiated by way of documentary evidence. DM