The National Director of Public Prosecutions v Victor N O and Others

The Financial Intelligence Centre issued directives freezing funds held in bank accounts of Tariomix (Pty) Ltd and its directors, Mr Liebenberg and Ms Kleynhans, suspected to be proceeds of a fraudulent diamond investment Ponzi scheme. The NDPP obtained an ex parte preservation of property order under s 38 of POCA. The respondents successfully applied for reconsideration, and the High Court set the preservation order aside for failure to meet POCA requirements. The NDPP noted an appeal but failed to timeously file the record, causing the appeal to lapse. Meanwhile, Tariomix was placed under provisional and then final liquidation, and the directors’ estates were sequestrated. The funds were paid to the liquidators for administration under insolvency law. The NDPP applied for condonation and reinstatement of the lapsed appeal.

The application for condonation and reinstatement of the appeal was dismissed with costs, including the costs of two counsel.

The case clarifies the interaction between POCA asset preservation mechanisms and insolvency proceedings, confirming that POCA does not automatically trump liquidation once a preservation order has lapsed or been set aside. It reinforces creditor and investor protections under insolvency law and constitutional property rights, and underscores strict compliance with appellate procedural rules.