Deputy master of the Joburg Master of the High Court Reuben Maphaha and liquidator Ralph Lutchman are facing an internal forensic investigation involving R46-million in fees the latter charged in the liquidation of Bosasa entities.
The Department of Justice and Constitutional Development initiated the probe to test the allegations of collusion and corruption levelled against them by Jared Watson, the nephew of the late Bosasa boss Gavin Watson.
Watson accused Maphaha and Lutchman of “stifling” the liquidation process for nefarious reasons.
Watson turned to Minister Ronald Lamola and director general in the ministry Doctor Mashabane after a series of letters he wrote calling on Maphaha and Lutchman to get their act together fell on deaf ears.
His efforts included a plea to the chief master in Pretoria to whip the duo into line, but that too failed.
In a letter that he wrote to Lamola on September 8, Watson raised a myriad of concerns, including possible collusion and corruption between Maphaha and Lutchman.
According to Watson, Maphaha unlawfully approved the liquidation account fee of Bosasa estates at Lutchman’s request to the tune of approximately R46-million.
Watson told Lamola and Mashabane that he initially calculated the “unlawfully approved” fee for Lutchman services to be about R8-million.
“On closer inspection, however, the full extent of the fees Mr Lutchman had applied for Mr Maphaha to approve was, in fact, R45 836 203.40”.
He said the amount was spread across six African Global (Bosasa) entities in liquidation.
Watson charged that Lutchman’s application and Maphaha’s subsequent approval violated all insolvency laws.
In Watson’s view, Lutchman and Maphaha were found legally wanting on at least five fronts. Firstly, Lutchman’s submission of the accounts was approved by Maphaha “the very next day” without ever being opened for inspection by creditors as demanded by the law.
Secondly, Lutchman is legally obliged to inform the public that the accounts were submitted and were open for inspection. Lutchman did not do that.
Thirdly, Watson said, Lutchman was meant to advertise in the Government Gazette that Maphaha had approved the accounts “the very next day” but failed to do so.
Fourthly, what was more concerning and smelled of underhandedness to Watson was that both Maphaha and Lutchman sidestepped the obligation to provide interested parties in the liquidation with their legal right to inspect the account and object, if necessary, prior to
approval by Maphaha “the very next day”.
Maphaha and Lutchman’s actions were a festival of illegalities and unlawful acts, wrote Watson.
He said the latter was a provisional liquidator not entitled to submit the accounts because he was not confirmed as final liquidator at a meeting of creditors as the law requires.
Watson believed that Maphaha and Lutchman grossly miscalculated by denying him representation and voting rights on the appointment of final liquidators.
He alleged they were ignorant of the fact that African Global Holdings, which he leads and is not under liquidation, was the “ultimate holding company” for Bosasa and its subsidiaries.
“There is a legitimate perception of a relationship of undue influence between Mr Maphaha and Mr Lutchman.
“Mr Maphaha was aware of this perception on 29 August 2023 and therefore should have recused himself. He did not,” wrote Watson.
He added that Maphaha had in fact arrogated to himself powers he did not have in law, and the chief master failed to discipline him.
“We once more are left with having to request that the minister (Lamola) should use his powers over the chief master to direct them to do what is appropriate”.
He had urged that the chief master remove Maphaha from the liquidation and install assistant masters, as required by law, to run with the process.
Lamola’s spokesperson, Chrispin Phiri, said the minister was not taking the allegations lightly.
Hence the strong move to do a deep dive to enable the department to take appropriate action against anyone found on the wrong side of the law, Phiri said.
“An internal forensic investigation is underway. Once we have a report, we will be in a position to pursue its findings and recommendations,” he said.
The allegations come as the SIU is seized with an investigation into maladministration, irregular, improper or unlawful conduct within the same court.
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