Namibian investment company Trustco is causing some consternation among the legal fraternity in that country.Correspondence seen by the Financial Mail shows a desperate effort by a group of legal firms to secure payment from Trustco subsidiary Legal Shield for services rendered to policyholders.Legal Shield — which offers affordable legal insurance to clients — is a large cog in Trustco’s operational structure.Trustco announced late last year that it would sell 20% of Legal Shield to US-based fund manager Riskowitz Value Fund for R1.2bn. That would imply a value of R6bn for Legal Shield when Trustco’s market capitalisation on the JSE is about R7.4bn.ISG Risk Services executive Eben de Klerk, who represents a group of legal firms, says his clients have been unable to get full payment from Legal Shield Namibia for many months now."When inquiries are made for long overdue payments, the legal practitioners are simply informed that their mandates [on behalf of insured clients] are termin...
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