Kingfin problems investigated
2009-06-25
THE fears of investors in King Financial Holding are growing that this business is not able to cover its liabilities. According to reports in the Sunday press, the construction company Wilson Bailey Holmes-Ovcon (WHBO) is to apply for liquidation of King Financial Holdings, which owes them R30 million for the construction of the King’s Court shopping centre in Port Elizabeth and King’s Mall in East London. Funding for the projects was obtained from investors who were promised exceptional yields. Many investors raised the bonds on their homes to benefit from the investment scheme. These investments have now been converted to unlisted shares. Many investors complain that they were not informed and that share certificates have not been received. One investor, who went to the Cape High Court to have his funding released by Kingfin, withdrew his liquidation application after his funding of R200 000 was returned last week. He was promised a yield of 2,5% per month on his investment. The Financial Services Board is currently investigating the activities of Autumn Star, which marketed the property investments of King Financial Services to 688 investors to the tune of more than R80 million, according to the newspaper Rapport.
More
News
|
