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I am a qualified Attorney. I specialise in Property Law, Commercial Law, Corporate Law and Trusts.
 
Please visit our website at www.prop-law.co.za for more details.
 
I am an elected Committee Member of the Property Committee of the Association of Pretoria Attorneys and through my involvement, I like to ensure that I am constantly at the "sharp-end" of Conveyancing Practice.

I am the elected Chairman on the Gauteng Council of SAPOA. The South African Property Owners Association (SAPOA) is the biggest and most influential institution in the property industry. SAPOA members control about 90% of commercial property in SA, with a combined portfolio in excess of R150 Billion (about $22 Billion). I am also on the National Council and the National Legal Committee of SAPOA.
 
Member of the Institute of Directors South Africa and Member of the Sirdar Governance Panel.

24 April 2013

SHAREMAX: NOVA PROPERTY GROUP HOLDINGS

Here is the latest Article on Moneyweb relating to the long-running saga of Sharemax.

All you need to know is contained in the following paragraphs from the Article:

  • Nova Property Group has been in existence for over a year but there has been no word on when its financial statements might be published. These financial statements should provide investors with an idea of Nova’s financial health and thus the likelihood of eventual repayment of their debentures, or, if they selected shares, what these shares might be worth.

  • Because it is a public company, Nova’s financial statements should be available, on request, from the Companies and Intellectual Property Commission (CIPC). Earlier this year, Moneyweb made a request to the CIPC’s disclosure division for copies of Nova’s financial statements. On February 26, 2013, CIPC informed Moneyweb that no financial statements were on record for Nova.
 

Sherlock Holmes famously said "when you have eliminated the impossible, whatever remains, however improbable, must be the truth"

In the absence of any evidence to contrary, one must assume that the failure by a Public Company to meet its statutory reporting requirements is an indication that they have something to hide.

Surely, the company (or Dominique Haese on its behalf) could either make the financial statements available as they are required to do or, alternatively, to simply state that the financial statements are not available for "XYZ reasons".  Simple really ... or should I say: "Elementary, my dear Watson!"


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Wanted: Financial statements for multibillion rand property group

Share and debenture holders deserve to know how this public company is performing.

JOHANNESBURG – Nova Property Group Holdings, a public company with a large property portfolio, has given no guidance on when share and debenture holders might expect to receive financial statements. Nova is the company that owns all the properties that used to form part of the Sharemax portfolio. It was formed as a result of a ‘Section 311’ rescue scheme which received court sanction in January last year.

Nova Property Group and its subsidiary have issued shares and debentures to some 34 000 investors who previously held instruments issued by the various Sharemax syndication companies. The total amount invested was about R4.5bn. The Sharemax investors could choose whether they wanted to received shares or debentures. The shares are issued by the public company Nova Property Group Holdings. The debentures are issued by Nova Property Group Investments, a private company which is a wholly-owned subsidiary of Nova Property Group Holdings

Nova Property Group has been in existence for over a year but there has been no word on when its financial statements might be published. These financial statements should provide investors with an idea of Nova’s financial health and thus the likelihood of eventual repayment of their debentures, or, if they selected shares, what these shares might be worth.

If Nova Property Group has a February year end, this would mean that financial statements to February 2012 are long overdue. Moneyweb contacted Nova director Dominique Haese on Monday to ask about the financial statements. Haese said “no comment” before disconnecting the call. Similarly, a debenture holder who asked about financial statements was informed on April 18 that he would receive feedback “in time”. He has heard nothing since. Likewise, other investors and financial advisers polled by Moneyweb say they have not received financial statements.

Because it is a public company, Nova’s financial statements should be available, on request, from the Companies and Intellectual Property Commission (CIPC). Earlier this year, Moneyweb made a request to the CIPC’s disclosure division for copies of Nova’s financial statements. On February 26, 2013, CIPC informed Moneyweb that no financial statements were on record for Nova.

Moneyweb also contacted Nova’s auditors, BDO. Partner Japie Schoeman replied: “I can confirm that we are the auditors of the Nova Property group of companies. In terms of internal policies and client confidentiality rules that we are bound to, I can however not give you any other information. I hope you will understand.” Schoeman would not even confirm whether BDO has been supplied with the information necessary to perform an audit. This type of confirmation has previously been given to Moneyweb by auditors of other companies, and would not appear to breach client confidentiality. According to CIPC records, Nova’s directors are: Dominique Haese and Dirk Koekemoer, both of whom were involved with Sharemax prior to its collapse, accountant Rudi Badenhorst, and corporate lawyer Connie Myburgh. Prior to publication a draft copy of this article was sent to Haese with the invitation to correct possible factual errors and offer additional comments.


Haese’s response follows:

Dear Mr. Cobbett,

Your email and ‘draft article’ of yesterday refers.

At the outset, please note that the Nova Group insists that you publish the content of this email, together with whatever Moneyweb intends to publish, if at all.

Should Moneyweb choose to publish the “draft article”, the Nova Group insists that such “draft article” be published exactly, word for word, as such “draft article” was submitted to us for comment.

The Nova Groups’ only comment, at this time, is that the Nova Groups’ Financial Statements have been and are available to those persons who are entitled thereto.

Due to the persistent negative and destructive nature of “reporting” experienced from Moneyweb, the Nova Group is not prepared to share any information with Moneyweb, nor to further comment on any communication from Moneyweb.

Hence the comment from myself (Ms Haese) to you referred to in your “draft article”.

Moneyweb’s behaviour in attempting to consistently force communication, linked with the arrogance to attempt to enforce “cut-off timelines for comment”, unilaterally imposed by Moneyweb, is deplorable and rejected.

History has shown that Moneyweb will, in any event, publish what it sets out to publish, whether or not comments are provided, and this under the ever present threat that failing comment, Moneyweb will publish what is put forward in the form of a “draft for comment”, notwithstanding how factually incorrect, bias and detrimental to third parties the proposed “draft for comment” may be.

All the rights of the Nova Group are reserved pertaining to the persistent factually incorrect reporting by Moneyweb and the intentional dissemination of factually incorrect, bias and detrimental information.

Regards
Dominique Haese

3 comments:

  1. This is so interesting blog. You are best listing knowledge provide at this site. I am very excited read this nice article. You can visit my website.
    Property Shares

    ReplyDelete
    Replies
    1. Nova property group have vacated their office in 105 Club avenue waterkloof ridge. Does anybody know where to ?

      Delete
  2. What is going to happen to the investor's money? When will we get our money back, if at all?
    Hard earned retirement money and we do not get ANY feedback from these people.

    ReplyDelete