Teta withdraws investment in Fidentia

Ceo gives assurances following FSB investigation THE TRANSPORT Education and Training Authority (Teta) has recalled its R245m investment in Cape-based asset management company Fidentia, which is currently under investigation for misappropriation of funds. Teta CEO Dr Piet Bothma told FTW last week that the Authority had invested money and achieved healthy returns with Fidentia over the past three years. “We invested in Fidentia only after the necessary procurement processes had been taken and have had no problems until now,” Bothma said. “When we learned that they had a problem with liquidity last year we chose to withdraw all our investments. We verified availability of funds and those funds are currently being returned to us on a monthly basis. Because of the nature of the investment it’s not possible for them to sell them off immediately.” According to Bothma, prudent investment has earned R24m a year for the Teta. “Although that money is committed to a variety of projects, we don’t pay for those projects up front and therefore invest the money for our stakeholders to ensure a return on investment.” A Business Day article last week stated that Fidentia was the subject of a High Court application by the Financial Services Board and that the Cape High Court had placed Fidentia Holdings and its two subsidiaries, Fidentia Asset Management and Bramber, under curatorship.