The R1.4bn Moti in Investec's eye

Issue #118, 1st August 2009


The R1.4bn Moti in Investec's eye

South Africa's best-dressed developer owes the bank R8.4m a month - and he hasn't paid for a year. 

Investec Private Bank executives in Johannesburg meet every Tuesday morning to meditate on whether it was wise of them to have advanced nearly R1.4bn in group facilities to controversial property developer Zunaid Moti.

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Reader's comments

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Submitted by : Wynand on 2009-08-23 16:41:48
Just read the business section of sunday times, this project is placed in liquidation?
 
Submitted by : Donovan on 2009-08-07 09:07:55
I'd recommend reading the Nondela website newsletter, too. Here's some pearlers from the Dear Chairman himself:

(From http://www.nondela.com. Latest newsletter is July 2008, so don't be fooled about the winter settling in, it isn't this year's one)

'While winter settles in over the Drakensberg (and to a large extent, over the property industry as a whole), activity at Nondela Drakensberg Mountain Estate is going forwards unabated, thanks to uninterrupted cash flows and investor confidence in this market-leading project by the Moti family.

Abalengani Chairman Zunaid Moti says that banks are becoming increasingly tough on funding for golf and holiday estates. This is borne out by a number of golf estates folding or in financial trouble in the past month – estates that were dependent on sales volumes to keep construction on site going.'
 
Submitted by : Donovan on 2009-08-07 09:04:16
Check at this: A 'billion Rand' (uhuh) 'investment' (uhuh) company with a website that looks...well, if anything, worse than the Durban 2010 one.

http://www.abalengani.co.za/

Note especially that the company will be moving offices. On the 5th of September, so there's ample warning. Oh, oh, no that was LAST year.

Dearie me, something tells me Investec let its guard down on this high flyer. Risk management, what's that again?
 
Submitted by : Donovan on 2009-08-01 14:46:56
Doesn't stop Zunny-boy from living the life, huh.
 
Submitted by : Reon on 2009-07-31 14:28:16
How is it possible that this "Larnies only bank" can be taken like this? Who will carry the can?

Editor's Note
Maybe some old pensioners somewhere in the country... read our previous reports on Investec

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