Latest news with #LeGrange
IOL News
11-08-2025
- Business
- IOL News
The Liquidation Cartel: How MTI's R450 Million Vanishing Act Previews Banxso's Fate
With Judge Le Grange's ruling imminent, Banxso clients fear a repeat of the MTI disaster, where the legal system prioritises profits over justice, leaving ordinary South Africans in financial despair. Image: IOL / Ron AI The stage is set for another potential South African liquidation tragedy. As creditors wait for Judge Le Grange to deliver judgment in a case that could seal the fate of thousands of Banxso clients the anxiety amongst clients is growing. The precedent is terrifying: Mirror Trading International creditors have waited four years for a single cent while liquidators Bester and Van Rooyen have pocketed millions each, and law firm Mostert & Bosman extracted nearly R25 million in fees. Now the same players are circling Banxso, having already rejected a R57 million settlement that would have guaranteed 100% creditor payouts to the liquidation applicants. The message is clear: why settle for full creditor recovery when prolonged liquidation proceedings generate far more lucrative professional fees? How R1.1 Billion Became R627 Million The Mirror Trading International collapse exposes the brutal mathematics of South Africa's liquidation industry. When liquidators recovered 1,280 Bitcoin worth approximately R1.1 billion in 2021, creditors held hope for meaningful recovery. Four years later, the estate has mysteriously shrunk to R627 million, leaving R450 million spent and not a single creditor payment made. The June 2023 liquidation and distribution account reveals the shocking scale of professional extraction. From an estate balance of R803 million at the time of the report being published there was already an amount of around R297,000,000 spent over two and a half years, eight liquidators claimed R138.5 million in fees while creditors received nothing. Masters' fees consumed R275,000, with the South African Revenue Service claiming a staggering R283 million. The remainder has vanished into legal fees and administrative costs, yet not one cent has reached the victims whose investments funded this professional feast. The mathematics of destruction become even more damning when considering lost investment returns. The R1.1 billion recovered in 2021 should have generated substantial interest over four years of liquidation proceedings. Conservative investment returns of 8% annually would have added over R400 million to the estate. Instead, the current R627 million balance suggests this potential growth has also vanished into the professional fee vortex, representing another layer of value destruction that creditors will never recover. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. 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Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ The disappearing funds tell a damning story. Administrative costs have consumed the estate like acid through metal, devouring not only the principal amount but the investment returns that could have significantly improved creditor recoveries. Professional fees flow freely while creditors subsist on empty promises. The Western Cape High Court declared MTI an unlawful Ponzi scheme in 2023, yet the only people profiting from this designation are the very professionals appointed to serve victim interests. Most cruelly, liquidators promised creditors a second liquidation and distribution account in 2024 that would finally deliver payments. Industry whispers suggested a special dividend of 10 cents per rand of claimed amounts. That promise evaporated with silence taking its place as many creditors now bemoan the lack of transparency and non-existent communications on the matter from the liquidators, leaving creditors with nothing but the bitter taste of false hope while professional fees continued accumulating. A senior insolvency practitioner, speaking anonymously for fear of industry retaliation, revealed the ugly truth: "This has become the perfect legal heist. You seize control of massive estates, generate astronomical fees through manufactured complexity, drag proceedings across years, and by the time creditors realise the con, their money has been professionally laundered into legal accounts." Banxso, The Sequel Nobody Wanted History repeats with mechanical precision in the Banxso liquidation. When stakeholders offered R57 million in security to guarantee full creditor payouts for the liquidation applicants, Mostert & Bosman rejected the proposal without hesitation. The law firm allegedly withheld news of this settlement from clients, who discovered the offer through media reports rather than their supposed legal representatives. Judge Le Grange himself highlighted the matter during the application hearing remarking that it made no sense for a creditor to turn down a 100% offer in favour of long, drawn out and expensive legal proceedings that would surely end up with the same alleged creditor receiving 10 – 15 cents on the Rand in a best-case scenario. A forensic accountant with two decades of corporate insolvency experience explained the perverse dynamics: "These liquidations have transformed into wealth destruction machines. Not only do they consume principal through manufactured legal complexity, but they obliterate the investment returns that should compound over time. The R1.1 billion recovered in 2021 could have grown to R1.5 billion through conservative investments. Instead, it has shrunk to R627 million while generating massive professional fees. This represents systematic value destruction disguised as estate administration." Judge Le Grange raised pointed questions during May hearings about a website promoting Bester and Van Rooyen as preferred liquidators before the application had even been heard by the courts, asking directly and not receiving any substantial answer as to why this would not constitute touting in its worst form. The coordination suggests an orchestrated campaign that may violate professional conduct standards. A Verdict That Could Doom Thousands Judge Le Grange faces a critical decision that will determine whether Banxso clients receive their funds or feed the liquidation machine. The contrast could not be starker. Approving forced liquidation consigns clients to the MTI fate: years of waiting while professionals extract maximum fees from dwindling assets. The human cost of this decision extends far beyond financial statements. Banxso clients represent ordinary South Africans whose savings, retirement funds, and family security hang in the balance. One investor, who invested R150,000 captured the desperation: "If Banxso wins its case, I can access my money immediately. These liquidators see only the profits they can make from forcing this liquidation through, regardless of what happens to us." An MTI victim whose pension fund vanished into legal fees painted the horrific reality: "Four years of watching lawyers grow rich while I struggle with rent payments. They stole our money twice, first the original scammers, then the professionals meant to protect us. The system is designed to destroy creditors." David Versus the Legal Goliath Unlike MTI's passive collapse, Banxso stakeholders have mounted unprecedented resistance against regulatory and legal pressure. While most companies capitulate when faced with FSCA action, Banxso directors are challenging the regulator at every turn, including now preparing to take the authority to tribunal to overturn the final removal of their Financial Services Provider licence. This defiance represents more than corporate stubbornness. Banxso management recognises that surrendering to the liquidation cartel means abandoning their clients to systematic wealth extraction by professional services. Their R57 million settlement offer, which excluded the large sums held under court order in their bank accounts, demonstrates genuine commitment to creditor protection rather than capitulation to legal machinery designed to enrich lawyers and liquidators. A retired commercial lawyer with 40 years' experience described Banxso's resistance as extraordinary: "Most companies fold immediately when liquidation proceedings begin because fighting the system is expensive and usually futile. Banxso's willingness to challenge both the FSCA and liquidation applicants shows they understand what their clients face if this process continues." The company's tribunal challenge against the FSCA represents a broader fight against regulatory overreach that enables liquidation abuse. By freezing Banxso funds while failing to enforce court orders for their release, the FSCA created the perfect environment for professional fee accumulation at creditor expense. The Professionals Always Win Industry insiders describe a deliberate methodology perfected through countless liquidations. Early settlement offers that benefit creditors face immediate rejection. Proceedings stretch across years through manufactured legal complexity. Friendly professional services receive appointments to maximise fee extraction. Estate assets disappear through administrative costs while creditors receive blame for poor market conditions affecting recovery rates. The pattern extends beyond individual cases into systemic dysfunction. South Africa's liquidation framework has evolved into a sophisticated mechanism where liquidators receive guaranteed payment regardless of creditor outcomes, law firms bill unlimited hours with minimal oversight, administrative costs consistently exceed creditor recoveries, and settlement offers threatening fee income face automatic rejection. The R450 Million Question As judgment approaches, the MTI precedent looms like a financial death sentence. The R450 million that vanished from MTI's estate represents more than accounting irregularities or market volatility. It demonstrates how professional fees can consume entire estates while creditors wait indefinitely for justice that never arrives. A bankruptcy specialist summarised the brutal reality: "This is not incompetence or unfortunate circumstances. It represents a refined business model where creditor suffering generates professional prosperity. The longer estates remain in liquidation, the more fees accumulate. Quick resolutions are bad for business." Justice or Professional Jackpot? Judge Le Grange holds extraordinary power. His decision will either deliver justice to Banxso clients through immediate settlement acceptance or condemn them to the liquidation lottery that has already claimed MTI creditors. The choice represents far more than legal procedure. It determines whether South Africa's courts serve creditor interests or enable professional wealth extraction. The evidence is overwhelming. Banxso stakeholders have fought regulatory pressure, challenged FSCA overreach, and offered complete creditor protection through guaranteed settlement funds. They have demonstrated unprecedented commitment to client welfare in a system designed to sacrifice creditor interests for professional profit. Mostert & Bosman and their preferred liquidators offer the MTI template: years of proceedings, millions in fees, and zero creditor recovery. The Final Reckoning Judge Le Grange's judgment will echo far beyond Banxso. It will signal whether South African courts recognise the liquidation cartel's systematic abuse of creditor rights or enable continued professional profiteering disguised as legal process. Judge Le Grange faces a choice between creditor protection and professional enrichment. The question haunting thousands of Banxso clients is simple: will Judge Le Grange deliver justice or feed the liquidation machine that transforms creditor suffering into professional prosperity? The answer will determine whether South Africa's liquidation system serves justice or perpetuates the most profitable legal scam in the country's history.
The Citizen
24-06-2025
- General
- The Citizen
Hartbeespoort father rescues daughter as fire guts home, 8 pets perish
The home of Francois le Grange and his daughter, Carla, in Jean Botha Avenue, Meerhof, Hartbeespoort, went up in flames around 03:00 yesterday. 'I woke up to my daughter screaming. She lives on the top floor. When I ran up the steps to the door connecting the two units, I encountered flames. I screamed at her to get out on the balcony and ran around the house,' a traumatised Le Grange told Kormorant. Carla climbed over the balcony and held onto the railing. Le Grange managed to reach her legs and pull her down. 'I ran back to the front door on the top floor to try and get to the three dogs, five cats and the African Grey that were with her. However, I could not get in. Everything was engulfed in flames.' Neighbours rushed to help the family, and Necsa Fire, Hartbeespoort Emergency Medical Service (HEMS) and Madibeng Fire were soon on the scene. Despite firefighters' efforts, the top floor of the house was completely destroyed. 'I was looking for the animals this morning. I found the German Shepherd's carcass, but there was nothing left of the two Yorkies and four cats. All that was left in the bird cage was a small heap of ashes.' Two of Le Grange's dogs, which were with him in the ground-floor unit, escaped the fire. 'It seems one of the cats also managed to get out and was seen running around by people on the scene.' The cat has since been found. Le Grange's wife passed away four months ago, and he was living with his daughter in the house. 'We don't know what caused the fire. It started in Carla's unit. I doubt whether it will be possible to save any part of the house. Even the nose of the car in the garage melted from the heat. I am waiting for the assessors. I would like to know how the fire started,' said Le Grange. 'I want to thank everyone who came to our rescue – both neighbours and the firemen who did a wonderful job. My daughter is safe, I am safe, and I am thankful for that.' Breaking news at your fingertips… Follow Caxton Network News on Facebook and join our WhatsApp channel. Nuus wat saakmaak. Volg Caxton Netwerk-nuus op Facebook en sluit aan by ons WhatsApp-kanaal. Read original story on At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
The Citizen
08-06-2025
- Business
- The Citizen
Are you one of the almost 16% who can afford a home loan over R1.3 million?
The question is not only if you can afford a home loan but if you can afford all the other expenses of owning a property. Recent research by an independent economist reveals that less than 16% of South Africans can genuinely afford homes priced above R1.3 million, underscoring a growing disparity between loan approvals and actual affordability. This raises questions about the financial sustainability of homeownership for the average buyer, Henri Le Grange, certified financial planner at Old Mutual Personal Finance, says. 'Qualifying for a bank loan does not necessarily mean you can afford all the costs that come with owning a home. 'The affordability gap often arises because banks assess loan eligibility primarily based on income thresholds, without considering your broader financial plan.' Le Grange says banks typically evaluate affordability based not only on gross income but also on disposable income, net income and previous monthly expenses. 'However, they consider past data and may not account for additional costs that come with homeownership, such as maintenance, insurance, or the impact of interest rate changes. ALSO READ: More SA consumers battling to pay their home loans and credit cards – report Some people get home loans but cannot afford true repayment 'As a result, I have seen customers approved for loans that exceed their true repayment capacity, threatening their financial well-being. This disconnect highlights the importance of seeking professional advice before buying a home.' Research by Izak Odendaal, Investment Strategist at Old Mutual Wealth, highlights key reasons why owning a home remains out of reach for many South Africans: stagnant wages, rising inflation and higher interest rates. 'South Africa's high interest rates and increasing property prices have made homeownership increasingly difficult. 'Many prospective buyers have been locked out of the market due to these combined factors, resulting in record-low affordability levels in the housing sector. 'Buying a home is one of the biggest financial decisions you will ever make, and it is easy to underestimate the true cost of ownership. 'Many customers also overlook the ongoing costs tied to homeownership, such as maintenance, insurance, property taxes and utilities, all expenses that can place additional strain on household budgets over time.' ALSO READ: South Africans cannot afford their homes but also can't afford to sell them Financial adviser can help look at your financial long-term plan However, he says that a financial adviser can help customers look beyond simply qualifying for a loan and ensure they are financially prepared for the long term. 'Many customers focus only on whether they can afford the loan repayment, often neglecting their long-term goals. It is not just about paying the bond. You must plan effectively to secure your long-term financial well-being.' Le Grange says working with a financial adviser helps you to create a realistic budget and prepare for upfront as well as long-term costs. 'A solid financial plan ensures you are ready for the responsibilities that come with homeownership. The goal is to help customers avoid borrowing more than they can manage and stay financially secure in the future.' Le Grange encourages consumers to take these practical steps to check if they can afford a home loan before committing to one: #1: Prepare for ongoing and unexpected costs: When you buy a home, do not just budget for the deposit and monthly home loan payments. Ensure you are ready for other costs, such as repairs, maintenance and higher utility bills. There are also transfer duty, conveyancing fees and bond registration costs, which consumers often overlook. These costs can arise unexpectedly, and therefore it is important to set aside extra money to cover these expenses and avoid financial strain. ALSO READ: Thinking of buying your first home, here are five key issues to consider #2: Test your ability to make home loan repayments: Before committing to a home loan, try putting aside the amount you would pay each month into a savings account. This will help you to see if you can afford the repayment comfortably and, if necessary, adjust your spending habits to make sure you are ready for the commitment. #3: Think about changes in interest rates: Interest rates can change, which means your home loan repayments may increase in the future. It is a good idea to think about how a rate increase could affect your budget and make sure you are in a position to handle any changes to your repayment amount. #4: Choose a loan term that fits your budget: When you take out a home loan, think about how much time you want to pay it off. A shorter loan term will mean higher monthly payments, but you will pay less interest overall. A longer loan term can lower your payments, but you will pay more interest in the long run. Choose a loan term that works for your budget and future needs. ALSO READ: How to finance your home loan if you do not have a regular income #5: Speak with a financial adviser and have a financial plan in place A financial adviser can help you consider your overall financial situation and create a plan that works for your short-term and long-term goals. They can also highlight any risks or hidden costs and suggest the best strategy for managing your home loan while keeping your finances healthy. In a challenging economic environment, affordability and financial resilience have never been more important, Le Grange says. 'Now more than ever, making informed financial decisions is key to building a secure future. Speaking to a trusted financial adviser can help to ensure your choices support both your immediate needs and long-term goals.'
IOL News
04-06-2025
- Business
- IOL News
How to pass on financial wisdom to the next generation
Discover how to create a lasting financial legacy for your family by teaching your children the value of money and responsible financial management. Learn practical tips from Certified Financial Planner® Henri Le Grange on fostering financial independence and transparency. Image: Freepik Creating a lasting financial legacy isn't just about leaving money to your children—it's about teaching them how to manage it responsibly and understand its purpose. Accumulating assets is only half the battle in building generational wealth. The real opportunity is helping those who will one day be left behind recognise and value the opportunities made possible by the hard work and sacrifices of previous generations. Without proper guidance, money passed to successors is often lost. I've seen families squander inheritances on luxuries instead of investing, and siblings fall out because one received a million and less than the other. I've seen poor decisions erode wealth in just one generation. The secret to building lasting family wealth is creating an environment where everyone shares the same values about money. It's not just about how much you have, but about teaching your family to see money as a tool for creating opportunities and security, and raising good stewards to manage it responsibly. It's never too early to start teaching kids about money. Even children as young as four can benefit from small lessons that plant the seeds for responsible financial habits. To create alignment in the family and set clear expectations, Le Grange encourages parents to work with a financial adviser and involve their children in the process. 'While some parents hesitate to share their financial position, fearing it may create entitlement or discomfort, this step is crucial for building transparency and ownership,' he explains. 'I was sixteen years old when my dad included me in meetings with his financial adviser. It made me feel like part of the family's financial journey and taught me the importance of planning early.' Now, as a parent himself, Le Grange is committed to setting the same role model and instilling an appreciation for the value of money within his family. Here are practical tips for parents who want to pass on financial wisdom alongside financial wellbeing. Create a financial plan that includes a will: a comprehensive financial plan ensures your family's future is secure and aligned with your goals. Including a will in your plan is critical to ensure your assets are distributed according to your wishes, avoiding disputes and legal challenges. Regularly updating both your plans and will keeps them aligned with your family's changing needs and circumstances. Teach financial independence through hands-on experience: encourage children to manage small sums of money from a young age, making decisions about spending, saving, and giving. For practical advice, consider books like Make Your Kid a Money Genius (Even If You're Not) by Beth Kobliner, which offers age-appropriate strategies for teaching financial responsibility. Lead by example—do what you practice: children learn by observing their parents, so it's essential to model the financial habits you want them to adopt. If you budget, save and invest wisely, your actions will instil those values in your children better than any lecture. * Le Grange, Certified Financial Planner® at Old Mutual Personal FINANCE
IOL News
06-05-2025
- Business
- IOL News
Banxso Liquidation Case Kicks off in Western Cape High Court
Live coverage of the Banxso liquidation case unfolds in the Western Cape High Court, as investor Carol Margret Wentzel challenges the trading platform's practices amid allegations of fraud. Image: IOL / Ron AI The liquidation application against trading platform Banxso, brought by investor Carol Margret Wentzel, commenced on Monday in the Western Cape High Court before Judge Le Grange. Judge Le Grange, who appeared well-versed in the extensive case documentation, immediately delved into critical aspects of the proceedings. Early into the hearing, he raised questions about a website established by liquidators to gather support for the application. Advocate Van Rooyen, representing Wentzel, had mentioned the site collected approximately 2,000 responses potentially representing hundreds of millions of rands in claims. The Judge expressed concern about the practice of soliciting support for specific liquidators before claims were properly lodged, questioning whether this constituted inappropriate touting. He further inquired why experienced investors would need such assistance if the allegations of fraud were legitimate. When discussing the rejection of a settlement offer, Judge Le Grange questioned why Wentzel would decline an offer of full security paid into Banxso's lawyers' trust account in favour of liquidation proceedings that might yield significantly less compensation. Van Rooyen argued that the Consumer Protection Act established that companies paying referral fees constituted a Ponzi scheme, suggesting that if Banxso paid referral fees and bonuses to client accounts, it implied the use of client funds as the only explanation. This assertion appeared to generate some confusion in the courtroom with no one expecting him to raise the trading business potentially being a Ponzi scheme as an argument in the matter. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ The proceedings took an interesting turn when one of Banxso's counsels, Advocate Prinsloo, applied to strike certain evidence from the record. Prinsloo argued that the Financial Sector Conduct Authority (FSCA) had improperly complied with a subpoena issued by the applicant's attorneys, Mostert and Bosman, which demanded all documentation and transcripts related to the Banxso investigation. The defence contended that such subpoenas were inappropriate for motion court proceedings. Judge Le Grange questioned the timing of this application, noting that if the information was already available, removing it now might disadvantage the applicant's case. The FSCA responded that they had complied with a valid subpoena and had not colluded with the applicants or liquidators.
