Life assurer Old Mutual is to be sued in the Cape High Court on Monday for R65 million in what may be the first case of its kind in the country.
It is being sued by the AMK Pension Fund, whose curator claims the life assurer wrongfully paid out the fund's money to the employers of the members of the fund, Corporate Acceptance Finance. The curator, Johannesburg attorney Tony Mostert, is claiming R32,5 million paid over by Old Mutual in 1994, plus interest.
Old Mutual is contesting the claim.
In March 1994 AM International, a local subsidiary of a US group, was sold to Corporate Acceptance Finance and the new owners, Laurie and Jan Korsten, changed the name to AMK Technologies.
Between 1994 and 1996 pension fund money was transferred from the fund into the Korsten family companies, Corporate Acceptances, AMK Technologies and Wokor Investments. The companies were later placed in liquidation and the pension fund was placed under curatorship in March 1997.
The Korstens were acquitted of criminal charges in September.
Mostert argues in court papers that Old Mutual should not have paid the money out to the Korsten companies.
Old Mutual's Koos Stassen says the life assurer has appointed external legal advisers who will argue that Old Mutual acted lawfully and in compliance with its obligations and that the financial problems of the fund only came to light long after the assurer's administration had come to an end.
The advisers say the alleged losses of the fund were not caused by Old Mutual and that the life assurer cannot be held responsible for these losses.