Illustration photo. (Asbe/Getty Images)
One of Britain's top hedge fund managers has lost a legal battle over the recovery of $40 million (R750 million) in silver from the wreck of a ship sunk by a Japanese submarine during World War II.
Britain's Supreme Court declared on Wednesday that the South African government can claim state immunity in a lawsuit brought by a company controlled by hedge fund chief Paul Marshall.
At risk were 2,364 silver bars once destined for the South African Mint, hidden 2.5 kilometers below the surface of the Indian Ocean for decades until discovered and salvaged by Marshall's Argentum expedition. It had been. The company claimed it was owed a large salvage amount and had asked the court to “modify the award,” but the judges said they had since been informed that the two sides had agreed to a settlement.
The treasure was on board the SS Thilawa, which was sailing from Mumbai to Durban in 1942 when it was hit by two torpedoes and sank, killing 281 passengers and crew. The sinking has been called the “Indian Titanic'' due to the scale of the tragedy.
A Bloomberg Businessweek investigation reported in November that Marshall was pursuing deep-sea riches with Anthony Clark, a junior executive at his hedge fund who may be the most successful shipwreck hunter of our time. There is. Crake used underwater technology to open up the ocean floor for exploration like never before.
The SS Thilawa was en route to Durban via Mombasa and Maputo with 752 passengers, 222 crew members and 600 tonnes of cargo, including 60 tonnes of silver bullion. The ship never arrived. (report) @natti_1212) https://t.co/PhDqq4lMDf
— Hindustan Times (@htTweets) November 24, 2022
Clark said he has completed about 30 wreck salvage operations in all, sometimes as a major investor, sometimes as a minority investor, and often working with his company on behalf of clients. This includes SS Thilawa. The ship was first discovered at the bottom of the Indian Ocean in 2014 and salvaged by a secret expedition three years later. The silver was transported to the UK port of Southampton and then stored in a secure warehouse, where it has remained ever since.
The South African government had argued that not only did it still own the silver, it had no need to respond to the lawsuit. Supreme Court justices agreed, saying the silver was a non-commercial cargo and the government was entitled to immunity.
The ruling reversed two previous court decisions, with the judge previously saying the government had likely “forgotten” about the gold. A filing with the Companies House records that Marshall controls Argentum.
