Sails’ employees’ hopes dashed

The 12-odd employees of SA Independent Liner Services, without pay for five months, appear to have had their hopes of some form of financial cushion dashed. A company endowment policy to which they were beneficiaries has been attached as part of the Sails estate. Sails founder and twice suspended MD, Ian Wicks, says Sails decided on the Liberty Life policy in view of the propensity of some departing employees to go on a spending spree, also given that retirement annuities are not redeemable until age 55. Estimating the three-year-old policy to be worth around R500 000 at present, Wicks says the company matched monthly employee contributions, his own amounting to around R140 000 over the period. The idea was that it would act as a form of employee assurance since they would have some money to hand once they left Sails. Darusha Moodliar of liquidators Sanek Trust has a completely different take on the matter, though. “The Liberty Life endowment accrued to the creditors because Sails, rather than the employees, was the owner of the policy. It was not for the benefit of employees but spouses on the employee’s death.”