A director of the two companies belonging to the well known Nigerian pastor Joshua Iginla Ministries NPC turned to the Gauteng High Court, Pretoria, in a bid to set aside a summons directing him to appear before an enquiry where he is required to answer questions relating to an alleged pyramid scheme.
Two of Pastor Joshua’s companies were earlier placed into provisional liquidation following claims that it had received more than R6 million from a pyramid scheme operating in KwaZulu Natal.
One of the directors of the companies, Prince Ndamase, was summoned by the liquidators of SNS Holdings Proprietary Limited to give evidence before them regarding “donations” the church had received.
He asked the court to set aside the summons (subpoena) issued by the liquidators directing him to appear as a witness at the enquiry.
He also asked for an order to declare the venue for the enquiry, being the offices of the attorneys of the liquidators, as inappropriate for the purposes of an impartial enquiry by an impartial commissioner.
It is said that SNS carried on the business of an unlawful pyramid scheme. The public invested R650-million in the scheme. In July 2020, SNS was placed in final liquidation by an order of court.
The court was told that prior to its liquidation, SNS paid R6,2m into the bank account of an entity known as Champions Royal Assembly NPC - described as a prophetic and deliverance ministry belonging to prophet Joshua. These payments were later set aside as impeachable dispositions.
Champions Royal Assembly was directed to pay the money to the liquidators of SNS. This was not done and Champions were subsequently placed in provisional liquidation.
Prior to its liquidation, SNS also paid nearly R8.3m into the bank account of Joshua Iginla Ministries. These payments were similarly set aside as impeachable dispositions. Joshua Iginla Ministries was directed to pay the money to the liquidators, which also did not happen, which resulted in this company also being provisionally liquidated.
Upon investigation, the liquidators found that Champions Royal Assembly had paid Ndamase (the applicant in this present application) slightly more than R1m. The liquidators further discovered that Joshua Iginla Ministries had paid the applicant R115 000 00.
The principal source of the funds in the bank accounts of Champions Royal Assembly and Joshua Iginla Ministries, was SNS. The directors of SNS were one Mr and Mrs Sibiya.
There is no litigation pending between the liquidators and the applicant, but the liquidators wanted the applicant to shed more light on the payments and to produce documents relating to it.
He objected to this on various grounds, including that it will unjustifiably infringe on his right to privacy and his right to freedom of religion, in that a donation made at a church is universally considered an act of worship.
As to the documents which the applicant is required to produce in terms of the summons, the liquidators contend that they are entitled to investigate whether the payments made to the applicant by Champions Royal Assembly and Joshua Iginla Ministries, were lawfully made.
The liquidators contend that if it emerges from the enquiry that the payments were not made for any lawful cause, but simply as a “money-laundering exercise”, the liquidators may have a claim against the applicant.
Similarly, if it emerges from the enquiry that the payments are impeachable dispositions, then the liquidators of Champions Royal Assembly and Joshua Iginla Ministries may have cause to recover the payments from the applicant.
Acting Judge Yvan Coertzen said in his view the documents requested are relevant to the enquiry, and appear to be connected to the trade, dealings, affairs or property of SNS.
“ There is reason to believe that the documents requested will shed light on the affairs of SNS before the winding-up,” he said.
As to the issue of religious freedom, the applicant stated that the investigation was sparked by the donations which the Sibiyas made to the church. He argued that the Sibiyas exercised their religious rites by making donations to the church as an act of worship.
Judge Coertzen, in turning down the application, said he failed to see how, on the facts, the enquiry and the summoning of the applicant as a witness, may constitute an infringement of the Sibiyas’ and the applicant’s right to freedom of religion.
Pretoria News