UIF, TERF scheme, fraudulent, couple, steal R10 million

A couple fraudulently pocketed R10 million from the UIF’s COVID-19 relief fund. Photo: Kev Gregory / Flickr

Hawks: Two arrested for defrauding IDC of R35 million

The two suspects are said to have presented a fake audit report to trick the Industrial Development Corporation into giving them millions

UIF, TERF scheme, fraudulent, couple, steal R10 million

A couple fraudulently pocketed R10 million from the UIF’s COVID-19 relief fund. Photo: Kev Gregory / Flickr

The Directorate for Priority Crime Investigation (DPCI), also known as the Hawks, have arrested two people for fraud to the tune of R35 million involving the Industrial Development Corporation (IDC).

The Hawks’ Captain Ndivhuwo Mulamu alleges that in October 2017, 42-year-old Eusuf Fehaaz and 58-year-old David Larkan  submitted a fraudulent audit report when applying for funding from the IDC.

Fehaaz is the director of a retail company, while Larkan is his accountant. Mulamu says the company subsequently received a whopping R35 million for development projects, as a result of those the altered audit report.

“Through internal forensic analysis, IDC discovered that the Durban based retail company, Glodine (Pty) LTD did not possess the R10 million surplus in their business bank account as indicated from their audit report. The matter was 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.

GAUTENG DUO CHARGED FOR FRAUD

A warrant for Eusuf Fehaaz and David Larkan’s arrest was then issued. They then handed themselves to authorities accompanied by their legal representatives on Wednesday, 25 May 2022. They were then charged for defrauding the IDC and taken to the Palm Ridge Specialised Commercial Crimes Court for their first appearance on the same day.

The court granted the accused bail of R10 000 and R5000, respectively. The case is postponed to 27 June 2022 for docket disclosure.

“We are anticipating a successful and well deserving conviction on this matter. In this country there is a lot of small businesses in need of funding to expand and develop their communities but may not be successful due such crimes. It is evident that the accused’ aim was mainly to destroy the administration of the entity by allegedly stealing from other aspiring entrepreneurs who need funding”. “The accused’ apprehension is a step towards a better South Africa with less criminals within our communities”

Hawks spokesperson Captain Ndivhuwo Mulamu

ALSO READ