Trouble for Signature Life

South African hotel management company, Signature Life Hospitality, has been wound up and now a liquidator will begin probing allegations that money was misappropriated. In a last-minute affidavit submitted to the Durban High Court, former CEO, Alan Vels, denied allegations that he or his co-director, Donald Pitt, were involved in a “pyramid scheme”. The allegation was made by Docklands Hotel manager, James Murray, in his affidavit in support of the liquidation application launched last month. Murray, who claimed Signature Life owed Docklands about R2 million, said a liquidator needed to take control, preserve documentation and interrogate direction, to determine “where did the monies go?” He said Signature Life had unlawfully “mingled funds” between the various businesses it operated. Murray also alleged that the company had misappropriated millions of rands this way, and yet it did not own any fixed assets or assets of any value. He said there had also been non-disclosures to the court regarding the so-called indebtedness of Signature Life to Docklands and another hotel, Hotel 54 on Gordon.