Statement on the Nova Group’s Financial Position and official Complaint to the CIPC
- Mar 10
- 2 min read
Based on my review of the Audited Annual Financial Statements (“AFS”) of Nova PropGrow Group Holdings Limited and its Subsidiaries (“Nova” or “the Nova Group”) for the financial years ending 28 February 2022, 28 February 2023, and 29 February 2024, I am respectful of the opinion that the Nova Group is facing severe Going Concern challenges. The indicators reflected in the AFS raise material doubt about the Group’s ability to continue operating in the foreseeable future.
In my capacity as Trustee of the Debenture Trust, representing approximately 18,500 Debenture Holders with a collective investment of about R2.2 billion, I am further respectful of the opinion, supported by the documentation submitted to the Companies and Intellectual Property Commission (“the CIPC”), that the Board of Directors of the Nova Group (“the Board”) is conducting the business affairs of the Group in a manner that may be reckless, as contemplated in section 22 of the Companies Act 71 of 2008 (amended) (“the Companies Act”).
Given these concerns, and in fulfilment of my fiduciary duties to protect the interests of Debenture Holders, I have lodged an official complaint with the CIPC in terms of section 168 of the Companies Act, read together with regulation 135 of the Companies Regulations, 2011. The full submission, including supporting annexures, has been provided to the CIPC for investigation.
The attached documents and Annexures contain my full submission to the CIPC.
I have decided to publish my previous engagements with the CIPC for the first time due to growing frustration with the apparent inaction by various regulators, including the CIPC, who are mandated to intervene when companies and their directors fail to meet statutory obligations.
Transparency is essential, and Debenture Holders deserve to understand the steps being taken on their behalf.
I will follow up with the CIPC on the progress of this matter in the coming week and will publish that correspondence on my website as part of my ongoing commitment to accountability and open communication.
Jean-Pierre Tromp
In my capacity as Trustee of the Debenture Trust
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