Hawks arrest two suspects for allegedly defrauding the IDC of R35 million

Two suspects arrested by the Hawks for allegedly defrauding the Industrial Development Corporation (IDC) of approximately R35 million have been released on bail.

Eusuf Fehaaz, 42, and David Larkan, 58, on Wednesday were granted bail of R10,000 and R5,000, respectively, by the Palm Ridge Specialised Commercial Crimes Court.

This after the pair handed themselves to authorities accompanied by their legal representatives.

Fehaaz is the director of the Durban-based retail company, Glodine (Pty) LTD, and Larkan is his accountant.

The men were arrested following investigations by the Hawks into allegations that they misrepresented themselves when applying for funding in October 2017 from the IDC.

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They allegedly submitted a fraudulent audit report to the government agency, which transferred around R35 million into Glodine’s business bank account for development projects.

Forensic analysis

After conducting an internal forensic analysis of the company, the IDC found that Glodine did not possess the R10 million surplus in their business bank account as indicated in their audit report.

Hawks spokesperson Captain Ndivhuwo Mulamu on Thursday said the matter was then reported to the Hawks’ Serious Commercial Crime Investigation in Johannesburg for further probing.

“Authorities successfully restrained the company’s bank transaction movements and a potential R25 million belonging to the entity was effectively secured,” Mulamu said in a statement.

Hawks provincial head Major General Ebrahim Kadwa praised the investigation team for the breakthrough in the apprehension of the two fraud accused.

Kadwa said they were expecting a successful conviction in the matter when it comes to trial.  

“In this country, there are a lot of small businesses in need of funding to expand and develop their communities but may not be successful due to such crimes.

“It is evident that the accused’s aim was mainly to destroy the administration of the entity by allegedly stealing from other aspiring entrepreneurs who need funding,” he said.

The case against the pair was postponed to 27 June 2022 for docket disclosure.

Compiled by Thapelo Lekabe

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