PRESS STATEMENT BY DR PENUELL MADUNA, REGARDING INVESTIGATIONS INTO THE MASTER'S OFFICE, PRETORIA HIGH COURT:

A few weeks ago, I announced the appointment of a Ministerial Committee of Enquiry to:

  1. Enquire into and investigate the manner in which the appointment of provisional liquidators is made by the Master of the High Court, Pretoria, in terms of section 367 and 368 of the Companies Act, No 61 of 1973, as amended.

  2. Enquire into and investigate the appointment of the Provisional Liquidators in Macmed Healthcare (Pty) Ltd., and particularly to ascertain what factors were taken into account by the Mater of the High Court, in appointing the Provisional Liquidators.

  3. Take immediate steps to secure and to take into safe-keeping all documents, notes, applications, correspondence and any other relevant matter relating to the appointment of the Provisional Liquidators of Macmed Healthcare (Pty) Ltd.

  4. Enquire into and investigate which persons, entities, corporations or partnerships were appointed as provisional liquidators by the Master of the High Court or his deputies or any other persons, duly authorised by him to make such appointments and the facts taken into consideration, when such appointments were made, during the period 1 September 1999 - 18 October 1999.

The Committee, which consisted of Mr Hassen Ebrahim and Mr Mike Tshishonga, two Deputy Directors-General in the Department of Justice and Constitutional Development, furnished me with a preliminary report on the 25 October 1999, as a result of which I extended terms of reference. I also directed the Committee to consider similar matters, in respect of the Office of the Master of the High Court, in Pietermaritzburg.

As a result of the information supplied to me to date, it has been decided to suspend:

Mr Barend Nell, Master of the High Court, Pretoria
Mr Charles Stewart, Deputy Master of the High Court, Pretoria, and
Mr Eugene Januarie, Deputy Master of the High Court, Pretoria.

The suspensions will take effect immediately and shall be reviewed, once all the investigations, into the various allegations made, have been completed.

I also wish to advise that Mr Stewart's wife, Lynnie Briel, who is also employed by the Master's Office, will be transferred to another office.

Various allegations have been made against certain other persons, who are usually appointed as liquidators. Those allegations are also being thoroughly investigated.

The Director of the Investigating Directorate: Serious Economic Offences has also been involved in the investigations and raided the homes of Mr Nell and a certain Mr Oliver Powell on the 24 October 1999. Once that Directorate has finalised its own investigations, the National Director of Public Prosecutions, Mr Bulelani Ngcuka, will decide whether any of the persons investigated will be prosecuted.

The investigations are part of a much broader strategy, on the part of the government to improve efficiency and stamp out corruption.

I wish to reiterate that all allegations of malpractice will be thoroughly investigated and that appropriate action will be taken, where necessary. Dishonest practices, even in a minor nature, will not be tolerated at all.

ISSUED BY PAUL SETSETSE ON BEHALF OF MINISTER MADUNA
11 November 1999
Cape Town
Tel: (021) 465 7507/7
Fax: (021) 252 4770

Visit us at: www.doj.gov.za