Fraud case pits co-directors against each other in court.
Image: Ron
A case of alleged financial fraud has placed two business partners on opposing sides of the courtroom, following the arrest of one co-director in connection with a fraudulent R1 million overdraft application.
The two men, who jointly directed two companies registered in 2011 and 2013, are now the focus of a criminal investigation led by the Hawks' Serious Commercial Crime Investigation unit based in Secunda.
According to authorities, the matter stems from a failed attempt in 2023 to secure an overdraft to support the second company, which was registered in 2013.
The bank initially declined the application due to the company’s unstable financial position.
It is alleged that one of the directors, a 43-year-old male, resubmitted the application using falsified documents.
The documents reportedly overstated the company’s profits while concealing tax liabilities owed to the South African Revenue Service (SARS).
Based on this misrepresentation, the bank approved a R1 million overdraft facility.
Following the discovery of irregularities, the matter was referred to the Hawks for investigation.
After a year-long probe involving multiple units, including Serious Corruption and Serious Organised Crime Investigations, a warrant for the suspect’s arrest was executed on May 2.
The man was apprehended in Brackenhurst, outside Alberton in Gauteng.
He is expected to appear before the Evander Magistrate’s Court on Monday, 5 May.
Brigadier William Mokonyama, Acting Provincial Head of the Directorate for Priority Crime Investigation in Mpumalanga, commended the arrest. “We have a dedicated team on the ground committed to getting to the bottom of every criminal activity and bringing perpetrators to justice,” he stated.
Cape Argus