The Katota Development program is the most comprehensive privately initiated development program; there is no controversy about the program. Katota is simply any company owned by its investors and the community the company serves. Many of such companies are consolidated along industry lines to deliver on a declared collective development program. Katota Program in RSA was involved in the 2010 Housing program involving over 300 development companies that failed due to false allegations made against the directors of the entity that held the exclusive right to procure loan funds for that declared program. The exclusive loan provision agreement also stretched to other phases of Katota Programs. It is unfortunate that the directors of the company holding the exclusive loan provision right were detained on false allegations in Mauritius. The Katota companies that suffered losses have demanded that they be restored to the position they would have been if the unfortunate allegation about the Directors of the company that held the loan funds provision right did not occur, No falsified bank guarantees are used by any Katota Company. As stated, at this stage the Katota program does not own a bank. Guarantees are issued from a bank to a bank. No katota company has falsified bank guarantees.
The plans of the controversial Katota Company, which undertook to buy more than 100 South African property developments worth billions, were based on guarantees that now appear to have been falsified.
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Join date : 2011-10-12
» A property project which was supposed to be the biggest in South Africa to date is part of an massive global fraud in which falsified bank guarantees worth millions of euros were used.
» Some years ago Joseph Eshun announced with much fanfare that he wanted to invest around R55bn in the South African property market.More than 100 developers allowed themselves to get sucked into the plans after Katota had more than 500properties evaluated.
» The property developers were assured that funding was on the way. It would have been obtained by means of bank guarantees worth €50bn that a Philippine investor, Dr Eddie Gil, had issued to Katota.
» These guarantees were designed to help Katota obtain loans from international banks for its ambitious property projects in South Africa, as well as for projects elsewhere on the continent.
» The South African developers are meanwhile not only waiting for their money, but they made millions of rands available to Katota to help it obtain financing. They are probably in danger of losing everything.
» Some years ago Joseph Eshun announced with much fanfare that he wanted to invest around R55bn in the South African property market.More than 100 developers allowed themselves to get sucked into the plans after Katota had more than 500properties evaluated.
» The property developers were assured that funding was on the way. It would have been obtained by means of bank guarantees worth €50bn that a Philippine investor, Dr Eddie Gil, had issued to Katota.
» These guarantees were designed to help Katota obtain loans from international banks for its ambitious property projects in South Africa, as well as for projects elsewhere on the continent.
» The South African developers are meanwhile not only waiting for their money, but they made millions of rands available to Katota to help it obtain financing. They are probably in danger of losing everything.
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