26 OCTOBER 1999
On 22 October 1999 the Director of the Investigating Directorate: Serious Economic Offences decided to hold a preparatory investigation in terms of section 26(13) of the National Prosecuting Authority Act, 1998, regarding alleged irregularities at the offi ce of the Master of the High Court, Pretoria, concerning the appointment of liquidators/curators.
On 23 October 1999 a search warrant was obtained from a Judge of the High Court, Pretoria, to search the homes of the Master, Mr B C Nell, and Mr O M Powell, as well as Mr Powell's office.
The searches were conducted by officials of the Investigating Directorate: Serious Economic Offences on 24 October 1999, and various documents were seized.
The fact that these searches were conducted, does not mean that either Mr Nell or Mr Powell is guilty of any offence(s).
The purpose of a preparatory investigation is to determine whether there are reasonable grounds to conduct a full inquiry in terms of section 28(1)(a) of the said Act.
The Investigating Directorate operates in terms of a secrecy clause contained in section 30 of the said Act, which obliges the preservation of confidentiality. It is not possible at this stage to estimate how long the investigation will take place.
The Minister for Justice and Constitutional Development, Dr Penuell Maduna, also appointed a Ministerial Committee of Enquiry of two persons with a view to investigate and report to the Minister not later than 25 October 1999. The terms of reference of th e committee was to investigate the manner in which liquidators are appointed and the factors taken into consideration when making these appointments.
The Minister has therefore, received a preliminary report as scheduled. In view of the volume of information that has to be processed, the Committee was unable to complete its assignment and the Minister as a result, agreed to extend its period. It will table a further report within two weeks.
In its preliminary report submitted to the Minister yesterday, the Committee reported as follows:
All stakeholders have welcomed the establishment of the Committee. A large number of representations, both oral and written have been submitted. The Committee is also in possession of a large number of relevant files.
It is evident that there is considerable unhappiness, both in the department and among the public, with the manner of and criteria used when making discretionary appointments of liquidators.
While the relevant legislation has been under review for some time now, it is necessary to also review the procedures and rules governing such appointments.
The Committee has coordinated its activities with a separate investigation being carried out by the Investigating Directorate of the National Directorate of Public Prosecutions. The Ministry will however, corporate with the NDPP, by providing them with an y relevant information which they may need which will enhance their judicial investigations into this matter.
ISSUED BY PAUL SETSETSE ON BEHALF OF DR MADUNA: Pretoria 26 OCTOBER 1999 cell: 083 2524 770