Former SA ambassador to the US and France Barbara Masekela has launched a
third court action in three years against former friend and financial manager
Jurgen Kogl to compel him to account for millions of rand from her share
portfolio and bank account.
But Kogl is fighting back, claiming in court documents that Masekela lacked
financial restraint, with evidence of credit card statements for clothing bills
amounting to hundreds of thousands of rand from Saks Fifth Avenue, Washington,
and boutiques in New York and Sandton City's Carisma, as well as bills for
luggage amounting to thousands of rand . There is even a R58 482 bill for a
tanzanite necklace and ring from a Johannesburg shop.
Kogl alleges in court papers that some of Masekela's R8,2m share portfolio was
sold to pay off the mortgage on her home in lower Houghton, extensive
renovations to her house, payment of her staff and her "numerous" personal
expenses.
Only a fraction of her initial portfolio remains, but Kogl denies that any of
Masekela's money is unaccounted for, arguing that she owes his company, Khula
Accounting Management Services, fees for conducting her affairs.
Masekela insists the documents consist of a "haphazard" collection of day-to-day
bills and records rather than a detailed account of Kogl's administration of her
affairs.
Two years ago, she brought a successful action against Kogl , forcing him to pay
R4,3m of her money, which he had invested in a company that owned Westcliff
White House, from where Kogl runs his empowerment company, African Renaissance
Holdings.
Kogl says in court documents that Masekela approached him in 2003 to invest in a
property development together with his family trust, Miraculix Trust.
He says although it was supposed to be a long-term investment, Masekela asked
him to buy back her 42% stake a year after she bought it and he was left to
find the money at short notice *1, causing
Miraculix Trust "considerable embarrassment *2".
His failure to pay the money led Masekela to lodge an application to place
Miraculix Trust under compulsory sequestration. The money was paid before the
application went to court.
The problem is that the money from the sales of Masekela's shares was paid into
Kogl's company Cay Nominees and then into Masekela's accounts.
According to her court documents, records of these transactions appear
incomplete, making it difficult for Masekela to keep track of how her money was
spent.
No documents were provided in respect of the largest item on the "statement
account", the purchase of Westcliff White House Limited shares for R3,225m.
Kogl, in his replying affidavit, denies personally handling any of Masekela's
finances, saying these were handled by an accountant employed by his company
Khula Accounting Management Services. "I was not the administrator of Barbara
Masekela's personal or business affairs," he says .
Kogl says he and Masekela had a verbal agreement that he would "assist her as a
friend, utilising my knowledge of and connections in the
fields of finance and investment *3 in SA ".
It was a "very broad arrangement", he said.
Her shares were placed by Kogl with Investec Security Limited in an account
under Cay Nominees to assist with administration but between 2001 and 2004, all
monthly statements were sent to Masekela and from 2004 onwards to her and Cay
Nominees.
Kogl also says no transactions took place regarding her bank account without her
knowledge.
He insists he furnished the former envoy's lawyers with all her financial
records as demanded, including bills for payments to Marchitects, the builders
of her Johannesburg home, for items that included heated towel rails for her
house and maids' quarters.
On the matter of fees, Masekela says Kogl had paid himself management and
accounting fees amounting to R300 000 despite having no regulatory authority to
do so.
Kogl insists the money was used to pay the accountant and staff who spend a
"substantial amount of time attending to the first applicant's finances and
demands of her lifestyle".
Masekela and Kogl have attracted media attention for their
alleged links to the controversial arms deal.
Masekela allegedly turned down an offer to go into business with French company
Thint because she had only just stepped down as ambassador to France, while Kogl
and his company Cay Nominees are alleged to have made "substantial" payments to
ANC president Jacob Zuma [*B]. Kogl also has a longstanding relationship with
President Thabo Mbeki [*A].
Apart from serving as an ambassador to two important South African
allies, she was an independent nonexecutive director of Altron and has served as
director of Standard Bank, the SABC and the International Marketing Council, as
well as trustee of the Nelson Mandela Children's Fund and the Nelson Mandela
Foundation.
She retired in March 2003 as executive director for public and corporate affairs
for De Beers Consolidated Mines.
With acknowledgements to Chantelle Benjamin
and Business
Day.
*1*2Not too long ago, Kogl's other
"friend", Jacob Zuma, found himself in a position of considerable embarrassment
when Standard Bank wanted to re-posses his Mercedes Benz and friend Schabir
Shaik could not on that particular occasion stump up the R180 000-odd that was
owing, but Kogl did not find it embarrassing to find that money quick, quick.