Old Mutual To Appeal Verdict To Pay R1.7 Billion

Old Mutual is set to appeal a ruling in which it was asked to pay the sum of R1.7 billion to the families of some miners who died in active service. 

The genesis of the whole crisis was Old Mutual transferring a trust to Fidentia, which looted it in turn, leaving many families high and dry. 

Ruling on the case, a judge had noted there were sufficient grounds to hold Old Mutual liable for the loss of funds via Fidentia. 

The Living Hands Umbrella Trust,  originally called the Mantadia Asset Trust Company (Matco), was set up to benefit orphans and widows of miners who died in active service. The trust was later sold to Fidentia in 2004. 

According to the Living Hands, Old Mutual had allowed J Arthur Brown, a convicted fraudster and former director of Fidentia, to get his hands on the funds without due diligence, resulting in the enormous that has led to the current litigation. 

Ruling on the case yesterday, Wednesday, July 13, Judge Thina Siwendu ordered Old Mutual to pay R854.6 million in capital and R854.6 million in interest to the trust. Old mutual would also have to cover the legal costs of the trust. 

Unimpressed with the verdict, Old Mutual is set to appeal it .

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