Venter braves High Court

2003-06-18 08:30

Nicolize Mulder

Johannesburg - Johannesburg socialite Edith Venter faced allegations of fraud, tax evasion and illegal business practices in a damages claim over a yacht bravely, but alone, in Pretoria High Court on Tuesday.

A businessman from Benoni, Robin Grant, is suing Venter for R350 000 in damages after he burnt his fingers in a deal with Marine Syndicate Management Systems (Masmas) in 1997.

Venter was a director of the company. She appeared in court without legal representation on Tuesday. After the court proceedings, she said she has been paying "ridiculous" legal fees for the past seven years.

Court documents indicate that Grant bought into a syndicate in November 1996. The syndicate would have bought the yacht, Capricorn, from Masmas for more than R2.9m. Grant paid R500 000 to receive a share of the income from the renting and promotion of the yacht.

He alleges that he met all his obligations under the contract, but that Masmas did not reciprocate. He cancelled the agreement and wanted his R500 000 refunded, but was unsuccessful.

Masmas was finally liquidated in July 1997. Court documents claim that the company was recklessly managed shortly before the liquidation and that the intent was to mislead creditors. Masmas's directors were allegedly aware of the fraud.

Venter claims that she was director of projects and was responsible for the yacht's interior decorating. She wasn't involved in the day-today business interest and wasn't aware of reckless management or fraud.

Grant claims that the company was not registered for personal tax, unemployment insurance or value-added tax (VAT). Venter said she didn't know anything about these allegations.

Investors' money was allegedly used to build another yacht, the Taurus. This asset of Masmas was apparently transferred to another company, in which Venter had an interest, shortly before the liquidation.

Venter's third husband, Garth Carstens from whom she was divorced in 1997, apparently assisted in the transfer of Taurus. Magazine articles about Masmas in 1997 claim that Carstens was the driving force behind the company.

"You marry the wrong man and this is what happens," Venter quipped as she walked out of court on Tuesday.

- Beeld