Synergy took R155m debt, court hears
November 26, 2003
By Bob Frean
Pietermaritzburg - Former PSC Guaranteed Growth (PSCGG) financial director Tony Hodgkinson was told by Tigon and PSCGG boss Gary Porritt that Synergy Management would be responsible for the R155 million paid to EBN Trading and Awethu Trust by PSCGG, it emerged yesterday.
Hodgkinson, who was subpoenaed to testify in PSCGG's application for the winding up of EBN and Awethu, said Porritt had told him telephonically that he (Porritt) and Jack Milne, the manager of PSCGG, had agreed that Synergy had been substituted as the debtor for EBN and Awethu.
Porritt claims Synergy repaid the indebtedness by buying shares for PSCGG and that the liquidators of PSCGG are going after the wrong entities in EBN and Awethu.
However, Jan Smit, an advocate acting for PSCGG, said the consolidated accounts of various entities did not reflect that Synergy had taken over the indebtedness of EBN and Awethu.
When asked by Smit whether the claim of substitution was bogus, Hodgkinson replied:
"I can't answer that."
Smit continued:
"Whose records are we to believe?" But Hodgkinson's reply was the same:
"I can't answer that."
Asked why he had resigned from the position of financial director of PSCGG, Hodgkinson said that he had been uncomfortable about the narrow spread of investments.
However, he remained a director of Synergy until June 2002.
He said he had not enjoyed working for Porritt, who was very autocratic, holding complete control, and whatever he (Hodgkinson) said was irrelevant. As a company director his opinion should have carried weight.
At the start of the proceedings yesterday Judge Leona Theron dismissed Porritt's application that this civil case be postponed until after the finalisation of the criminal case in which Porritt, Sue Bennett and Hodgkinson are to appear in the Johannesburg regional court in late January.
Theron said she would provide reasons for dismissing the application for a postponement later.
The case, which has been set down for three weeks, continues today.
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
