Louis Liebenberg and Tariomix: A diamond in a rough liquidation process?

A fracas has been unfolding about the integrity of the liquidation process of fraud-accused diamond dealer Louis Liebenberg’s company Tariomix.

This after it has come to light that the liquidators’ key legal advisor features in a Special Investigating Unit (SIU) report which has already landed on President Cyril Ramaphosa’s desk.

On Wednesday, the report’s findings pertaining to Free State attorney Kobus Senekal have been leaked on the Facebook group “Spotlight on Tariomix Liquidation”, casting a shadow over the liquidator collective headed by Vaughn Victor.

The investigation on which the report’s findings are based, spans the period from 1 January 2014 to 3 February 2020 – the date of the proclamation.

Tariomix liquidation: Legal advisor features in SIU report

The SIU report – of which The Citizen has obtained a copy – identified, among other matters, alleged corruption, intimidation, threats, misconduct, fraud, forgery, unethical behaviour and theft from executive management members in Masters’ offices, liquidators and attorneys.

Senekal is one of the key figures fingered for alleged misconduct in Investigation Matter 39 of the report which has not yet been officially released.

It alleges that he was previously engaged in misconduct and criminal offenses as legal advisor to the liquidators of various companies, including Sebal Investments and Lechwe Lodge Game Farm.

‘Need for increased transparency and accountability in Tariomix liquidation’

Carel van der Merwe, who posted the leaked findings involving the Bloemfontein attorney on the Facebook group, told The Citizen that the report “highlights the need for increased transparency and accountability in the Tariomix liquidation processes”.

Van der Merwe labels himself an activist in the fight to expose misconduct in liquidation and sequestration processes.

He stated that, in the light of the SIU investigation and report, Senekal’s involvement in the company’s liquidation is “a cause of concern for Tariomix investors whose funds are currently under the control of liquidators also advised by Senekal”.

‘Concerns about integrity’

“This development raises concerns about the integrity of the Tariomix liquidators and the liquidation process – and the potential for similar conflicts of interest, corruption and fraud.”

Van der Merwe further claimed that the findings of the SIU report have led to referrals to the National Prosecuting Authority (NPA), Department of Justice (DOC), Council for Debt Collectors (CD), and Legal Practice Council (LPC) for charges of misconduct, fraud, corruption, and unethical conduct against the attorney.

Claims of premature start to liquidation process

The Citizen‘s Carien Grobler previously reported that Tiaan Lombard, CEO of the payment platform AE Switch which Liebenberg started using in 2021 to trade his so-called “diamond packages”, called for an investigation into the Tariomix liquidators.

Lombard claims that the liquidators jumped the gun by starting the liquidation process prematurely.

“The liquidators already started collecting data to find applicants in November the previous year,” he said.

In an affidavit, Lombard states that a liquidator named Christopher Roos contacted him in November 2022 and requested names held on AE Switche’s database. Roos allegedly wanted to use the names to liquidate Tariomix.

The Citizen has seen the WhatsApp message sent to Lombard.

Tariomix liquidators’ legal advisor slams SIU report

Senekal however came out guns blazing when approached by The Citizen for comment on the leaked findings.

The attorney rubbished the SIU report, saying his request to the unit to provide documentation to back up its various claims with proof, has not been met.

“Provide the documentation, then I can reply. Surely the SIU should be able to provide the documentation to support what they are reporting on. Ask them to provide the docs, as the docs don’t exist.”

‘Dishonest and vexatious’

He went on to slam the allegations of statutory misconduct, conflict of interest and illegal fee arrangements in the SIU’s findings of his involvement with the liquidations of Sebal/Lechwe Lodge, as “dishonest and vexatious”.

Senekal presented The Citizen with documents sent to the SIU in which the attorney refutes the allegations against him.

The attorney claims these letters were sent to the SIU in reply to a document received from the unit on 28 October 2022 regarding the unit’s investigation.

No reply

According to him, the SIU never replied to the correspondence he sent in his own defence.

“The fact that the SIU refused to reply to the facts and allegations in my letter of 10 November 2022 leaves the contents of my letter undisputed,” Senekal declared.

In justification of his statement, he pointed out the following paragraph contained in his letter:

“Please take note that if you refuse and/or neglect to reply in detail to this letter by 18 November 2022, it will be assumed that you cannot contradict what is contained in this letter – and if you wish to contradict, we invite you to deliver the specific documents.”

Tariomix liquidation costs?

Touching on the Tariomix saga and concerns raised in the media that the liquidators might be overstepping their authority to up their financial gain, Senekal stated:

“The amount of cost vs the recovery is incomparable… There is proof of this in black and white.”

‘Dodgy’ diamonds are not forever: Louis Liebenberg and Tariomix

Since Liebenberg’s sensational arrest by the Hawks in October 2024 along with his wife Dezzi and seven others in connection with the high-profile Tariomix diamond investment scandal, the so-called “Carat King” has abandoned bail twice, choosing to stay behind bars for Christmas.

Liebenberg and his co-accused face 42 counts of fraud, five of racketeering, six of money laundering and various other statutory offences, including contraventions of the Companies Act 71 of 2008.

Tariomix, which operated under the name Forever Diamonds and Gold (FDG), allegedly solicited investments from an estimated 45,000 people under the pretence of mining, selling, and financing diamond transactions.  

According to Hawks spokesperson Colonel Philani Nkwalase, investors have been allegedly scammed out of R4.5 billion through Tariomix since 2019.

ALSO READ: Diamond dealer Louis Liebenberg: ‘I’m no beggar – my support runs deep’

Liquidation

Liebenberg and Tariomix have denied the company was unable to pay its debts or had acted illegally. 

It was placed into provisional liquidation in February 2023 following an urgent application brought by Ruan Botes en Jeandré Viljoen, two investors who say they never got their promised payouts.

The Master of the Hight Court then issued the liquidator appointment certificate on 8 March 2023 following the judgment of Acting Judge Mark Morgan.

According to BusinessLIVE, Liebenberg was accused in October by the liquidators of siphoning investors’ money to fund his lavish lifestyle, gambling, bribery, illegal diamond dealing and running a Ponzi scheme.

NOW READ: Diamonds are (not) forever? DA to probe ‘contradictions’ in Mashatile’s Louis Liebenberg gift