Company bosses released on bail after allegedly defrauding Industrial Development Corporation of R185m

Police seized R6 million cash during an intensive operation of rescuing Luqman Kazi, a Gauteng businessman who was kidnapped while he was on his way to work on Tuesday. Photo: SAPS

Police seized R6 million cash during an intensive operation of rescuing Luqman Kazi, a Gauteng businessman who was kidnapped while he was on his way to work on Tuesday. Photo: SAPS

Published Aug 12, 2022

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Pretoria: Two company directors, Mmatjanyana Gladys Matitoane, 53, and Lucas Lefu Tseki, 42, of Southern Place Group (Pty) Ltd, have appeared before the Palm Ridge Specialised Commercial Crimes Court on theft and fraud charges.

Hawks Gauteng spokesperson Captain Lloyd Ramovha said the appearance of the duo follows the initial arrest of 50-year-old Harvey Sicelo Buthelezi last month.

“Buthelezi is a director for Energy Fabrication (Pty) Ltd which embarked on joint venture with Southern Place Group (Pty-Ltd) in 2017. The Hawks investigation revealed that the directors, acting in concert, allegedly approached the Industrial Development Corporation (IDC) for assistance with a loan of R185 million,” said Ramovha.

He said the loan was meant to fund a new company that would specialise in heavy steel constructions.

“The agreement between the parties and IDC was approved on the basis that the amount was to be divided into three aspects: property loan, working capital and wiping of companies debts,” Ramovha said.

“The credit was approved on 16 October 2017, by the IDC, and the money was paid on the 28th of March 2018. The directors received the money and utilised it for personal gain and leisure which was a breach of the contract. The IDC has suffered a loss of R185 million as a result.”

The matter was reported to the Hawks’ serious commercial crime investigation team in May 2021, and the trio were later arrested.

The hawks said the three were granted R20 000 bail each, pending their next court appearance set for September 13, 2022.

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