Sandi Majali’s New Era Life accused of “serious contraventions”.

The Gauteng North High Court has appointed curators to look after New Era Life, an insurance company. A director of New Era is Sandi Majali, who is notorious for the role he played with Imvume, the key player in the Oilgate saga as the company that channeled R11m into the ANC's coffers.

New Era appears on the FSB's website as an authorised financial services provider. The company's website had been disabled.

Other New Era directors include: Maria Coelho, Krumchund Hariparshad; Chupu Mathabatha and Ndabezinhe Mtshali. The auditors are KPMG.

New Era is a company that specialises in funeral policies pitched at the lower end of the market. It has about 8 000 policyholders.

The curatorship order was granted on Tuesday following an application by the FSB's executive officer Dube Tshidi.

According to an FSB media release, the application follows an investigation into the affairs of New Era by the Registrar of Long Term Insurance.

"The investigation revealed serious contraventions of various provisions of the Long-Term Insurance Act and other problems in the business of New Era."

The curators are retired insurance executive Hendrik Augustyn and chartered accountant Octavia Matloa.

"In terms of the provisional order the curators will take immediate control of, manage and investigate the business and operations of New Era. The purpose is to conserve the business and they may not alienate or dispose of any of the property of the insurer without the approval of the FSB. In exercising their powers, the curators have been directed to consider the best interest of New Era's policyholders," says the FSB.

"The public is requested to allow the curators to do their work, without interruption as progress with the curatorship will be made available from time to time.

"The return date of the provisional order is September 1 2009 when interested parties may be heard and a report by the curators will be considered."

FSB deputy executive officer: insurance Jonathan Dixon says that the alleged contraventions revolved around governance and financial management. He could not elaborate at this stage. However, Dixon noted that New Era is solvent and he does not anticipate any risk in terms of policy claims not being met.

Write to Julius Cobbett: julius@moneyweb.co.za

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