Old Mutual Unit Trust Managers (Omut) was found liable for R1.7bn in losses suffered by the Living Hands Umbrella Trust because of the Fidentia scandal, a South Gauteng High Court judge said on Tuesday.
Judge Thina Siwendu wrote in her judgment that there is nothing extraordinary about the recognition and imposition of liability on Omut, according to a report by citywire.
“The provisions are clearly intended to protect the trust funds, and therefore are measures to protect the end beneficiaries, albeit indirectly. The imposition does no more than give effect to the regulatory protections intended,“ the judge wrote.
“There are good reasons to recognise and impose liability in this case. Our law sufficiently provides for liability for wrongfulness in such instances. While I do not decline the relief to develop the common law, I am of the view that there is already a sufficient basis to hold Omut liable.”
Old Mutual Wealth spokesperson Christabell Kota told Business Report that they are still reviewing the judgment and will comment further on the matter on Wednesday.
BUSINESS REPORT