Johannesburg — FIDENTIA curator Dines Gihwala is being sued in the Cape High court by Swiss-based investment management firm Montague Goldsmith for what it claims is its share of an investment in a black economic empowerment deal said to be worth about R30m.

Gihwala, a respected member of the legal fraternity, is one of two lawyers assisting an inquiry led by former National Assembly speaker Frene Ginwala into the suspension of national prosecutions boss Vusi Pikoli.

Gihwala is also chairman of the Independent Regulatory Board for Auditors.

His reputation is one of the reasons given by Montague Goldsmith for paying about R4m to the trust account of legal firm Hofmeyr Herbstein & Gihwala, of which Gihwala is chairman, for investment by Gihwala and businessman Lancelot Manala.

Unfortunately for the investment firm, the initial deal was allegedly agreed on a handshake, and the man who set up the deal, Anil Narotam, Montague Goldsmith's chief operating officer, has since left the company under a cloud and is facing legal action for shares he allegedly owes Montague Goldsmith.

Gihwala said yesterday that he would oppose the action, and was still drawing up a response.

"I am quite satisfied that I have done nothing wrong, and I will defend the matter properly in my response," Gihwala said.

"I have not had time to give it my full attention because I have been busy with Fidentia and other matters."

The papers were filed in the Cape High Court this month, and Gihwala, Manala, members of the Gihwala Family Trust and legal firm Hofmeyr Herbstein & Gihwala are expected to reply to the allegations next month.

Montague Goldsmith alleges in court papers that it became a joint shareholder with Gihwala and Manala in a company called Seena Marena Investment (SMI) in return for R4m in funding.

It believed its rights would flow from its one-third share in SMI.

It also allegedly lent Manala R988416 to pay for his share.

Montague Goldsmith, who made the investment on behalf of Grancy Property Limited, is claiming a share of the profits earned after SMI bought a 58% shareholding in broad-based empowerment property company Ngatana Property Investments, the empowerment vehicle of Spearhead Property Holdings.

Spearhead was later sold to listed property loan stock company Redefine Income Fund, and shareholders were offered 6,18 Redefine units for one Spearhead unit. And that was where the real profit was made.

Montague Goldsmith allege that Gihwala had never disputed their shareholding interest until June last year, when he alleged the money lent constituted a monetary loan to Manala and nothing more, a month before Redefine announced its takeover bid.

Vladimir Movshovich of Webber Wentzel Bowens, the lawyers representing the Swiss firm, said yesterday Montague Goldsmith and Grancy wanted their shareholding in SMI acknowledged, as well at its indirect interest in Spearhead, and for the money lent to Manala to be repaid.

It said it had resorted to legal action after efforts to have its interests recognised were unsuccessful and Gihwala adopted "a dismissive and uncooperative attitude".

Correspondence written by Gihwala on September last year to Narotam quoted Gihwala as saying: "You were never to be a shareholder in our company, you came in behind us for 630000 units... you were certainly not an independent party as you now try to suggest."