GEORGE NEWS - No sooner did Bridge Corporate get the threat of liquidation out of the way, than three members of the Aldum family - the beleaguered micro lender's single biggest shareholder - appeared in court on charges of fraud, theft and contravention of the bank act.

Bridge has been fighting for survival since 2014 when the company was placed in business rescue following the implosion of African Bank.

Corné Aldum and his sons, Maritz and Emile, appeared in the Johannesburg Commercial Court in handcuffs last week, just days after a liquidation application against Bridge was set aside with costs in the North Gauteng High Court.

According to an article by Erika Gibson in Rapport on Sunday, the criminal charges against the Aldums were brought by a Gauteng-based Bridge creditor, Leon Strydom, who had lost R1,3-million.

No to liquidation
The Aldums appeared in court shortly after the written judgement was issued on 28 August in the unsuccessful liquidation application by businessman Markus Janser and financial consultant Maurizio Decinti. Decinti had personally invested R5,5-million in Bridge and tens of millions more on behalf of other investors, friends and family.

Janser lost R11,5-million. Prior to running into trouble in 2014, Bridge was an enticing investment option as investors received up to 19% interest - after that they were lucky if they got 1%.

About 1 600 investors, mostly pensioners, invested well over R1-billion in Bridge. Niflas, a former George-based finance company, had invested R62-million of their elderly clients' money in Bridge - the single biggest Bridge investor at the time. Hundreds of Southern Cape investors lost their savings when Bridge stopped paying interest - one of the factors leading to Niflas's demise.

Bridge not an accused
Bridge corporate CEO Ryneveld van der Horst, who was brought in to save Bridge from liquidation in 2015, welcomed the setting aside of the liquidation application, saying the judgement clearly states that Bridge has a valid business plan accepted by a majority of shareholders. Van der Horst told George Herald that he takes note of media reports about the Aldums' appearance in court, but that it has nothing to do with Bridge's operations. "The Aldum father and sons are being prosecuted in their personal capacity. Bridge is not an accused."

He added that Maritz Aldum is a non-executive director on the board of six, but that the Aldums have no say in the management of Bridge.

The Aldums, until 2015 the controlling shareholders in Bridge when a compromise business plan was accepted to convert creditors' debentures to shares, still owns 29% of the company.

Business plan 'protects Aldums'
Maurizio Decinti and about 20% of creditors were vehemently opposed to the plan and demanded that the company be liquidated in order for investors to recoup at least some of their losses.

Decenti said he doubts if he will appeal the liquidation judgement, as it is too expensive to continue the fight. "The judge [NV Khumalo] based her judgement on previous cases. She did not consider all our proof. It took her nearly two years to write her judgement. I think the facts of the case and the myriad of companies that the Aldums put together were too complex. I am upset about the outcome, but will be following the criminal case against the Aldums with interest. If we cannot get our money back, maybe there will be justice in another way."

Decinti claims the business plan that was accepted to ensure the survival of Bridge in 2015 protects the interests of the main shareholders, in particular the Aldum family, to the detriment of the creditors. Interest on debentures is fixed whereas share payouts depend on profit. In terms of the business plan, the Aldums lowered their majority share in Bridge to 29%, but Decinti argues that as the shares are of no value, the Aldums gave up nothing and the creditors received nothing.

He claims the Aldums are linked to a complex network of corporations used to fund their luxurious lifestyles.

Bridge future 'rosy'
Van der Horst is positive about the future and says taking Bridge public is a very real option. "Bridge is turning a profit and generating cash. Now that the liquidation application is out of the way, we can build the company without anything holding us back."

Van der Horst says they are doing things differently these days. "We don't charge super high interest rates and our average monthly premium is R500 compared to the average premium of R1 700 in 2014. We can see the impact of this in our recovery rates. Our business model is working and we will concentrate on increasing volumes and capacity. Achieving growth without outside funding is within reach."

He says shareholders have walked a long and difficult road with Bridge and that they aim to create and realise value for the shareholders. "Paying dividends is one way of doing this, but we have several other plans in the pipeline that I believe will create more value than just paying dividends. But first we need to get the basic cornerstones in place."

To list a company normally takes about a year.

The case against the Aldums, who are out on bail of R10 000 each, will continue in October.

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