DURBAN - Fourteen months after fraud charges were laid against executives of the Edison Power Group, the Directorate for Priority Crime Investigation (Hawks) has not provided reasons for the slow progress on the matter.
No arrests nor progress have been made by the law enforcement agency after an investigation revealed that Edison Power Group, an electrical company in which Durban business tycoon Vivian Reddy is a shareholder, was allegedly defrauded of R150 million by some of the company’s top executives.
In July last year, the Daily News reported that the company had laid charges of fraud, corruption and embezzlement against some of the company’s senior employees, and an executive director, whose names are known to the publication.
National Spokesperson for the Hawks Brigadier Thandi Mbambo said that the investigation was continuing, and “all necessary documents still need to be obtained, as per the instruction by the National Prosecuting Authority”.
The company’s non-executive director, Ethen Singh, said he was concerned that the case had been dragging on for more than 14 months, with no arrests having been made.
“The Hawks have all the proof, including bank accounts and a list of assets, like aircrafts and helicopters and cars bought from proceeds of crime. The main persons involved in the fraud were the Financial Director and Head of Procurement with contacts executives. Corruption is so rife in our country, and it needs more determination from the law enforcement agencies to bring the perpetrators to book,” Singh said.
In addition to charges of fraud, corruption and embezzlement laid against the alleged perpetrators, Singh added: “We have laid further charges relating to the R150m fraud, and hope those responsible are charged soon.”
Contacted for comment, one of the company’s shareholders, Reddy, said that his family trust had disinvested from the company because of fraud.
“We are obviously concerned that no arrests have been made, and we can only wonder why there are no arrests despite all the detailed evidence that they were given. We can only hope that the investigators do what they are supposed to do, as required by the law,” Reddy said.
Last year, the publication established that the investigation leading to the revelation of the alleged fraud by some of the company’s most trusted employees and executives was brought to the company by a whistle-blower in 2019.
Following the fraud allegations, Edison Power Group instituted a year-and-a-half-long forensic investigation and subsequently handed over its findings to the Hawks Serious Commercial Crimes Unit in Germiston, Johannesburg.
At the time, Captain Ndivhuwo Mulamu said investigations were at an advanced stage and that the dockets would be transferred to the NPA for a decision.
Singh previously told the Daily News that: “The modus operandi of the senior management fingered involves collusion with suppliers, sub-contractors and payment to ghost service providers and ghost suppliers of materials. It included ghost workers and overpayment of bonuses, and illegal increases granted.”
Singh had also explained that some members of management had created their own sub-contracting companies and awarded contracts to themselves.
“Our investigations discovered that homes in exclusive estates were paid for by company funds for a staffer. Another employee bought a restaurant in an upmarket area with the proceeds of crime. Even school fees were paid illegally, via the company,” he said.
He further revealed how the lifestyle audits of some employees showed them living well beyond their means, and in some cases, owning multiple properties.
Daily News