Leaked forensic report exposes ECRF executive misconduct, but board chair Reuben Olifant shows resolute leadership

A leaked forensic report has uncovered alarming financial misconduct at Enable Capital Receivables Finance (Pty) Ltd (ECRF), yet the institution’s Board Chair, Reuben Olifant, has emerged as a resolute figure, in one of SA’s big corporate scandals. 

The confidential BDO Advisory Services report, completed in June 2025, details how senior executives, notably CEO Johannes Jacobus Coetzer and CFO Johannes Stephanus Olivier, allegedly misappropriated institutional funding, manipulated financial records, and engaged in related-party transactions that may constitute fraud. Investigators warned that these actions exposed ECRF to insolvency and potential criminal liability under the Companies Act, including reckless trading and breaches of fiduciary duties.

ECRF was mandated to operate strictly as an invoice discounting and receivables finance entity for fibre network contractors, raising approximately R700 million from institutional funders to advance verified invoices. Instead, the forensic report indicates that executives diverted significant funds toward infrastructure and construction projects through related entities, particularly Isibindi Solutions (Pty) Ltd and Warstar Construction (Pty) Ltd—without Board or funder approval.

“These were deliberate and knowing deviations from the company’s approved mandate,” the report states. “They exposed ECRF to serious financial risk and represented a material breach of both internal policies and statutory obligations.”

Investigators documented deliberate manipulation of financial information, including inaccurate debtor ageing reports, reclassification of historic payments, and manual alterations to portfolio management sheets without audit trails. 

Approximately R108 million flowed to Warstar Construction with minimal supporting documentation, and by February 2024, outstanding balances owed by Warstar-related accounts exceeded R254 million. The CEO and CFO could not provide sufficient explanations for these transactions.

Compounding the issue, the report highlights undisclosed conflicts of interest. Both executives held stakes in Isibindi Solutions, which directly benefited from ECRF funding, and used Warstar Construction as a conduit for these related-party deals, actions that constitute potential self-dealing and fraud under South African corporate law.

Despite these alarming findings, the report makes it clear that ECRF’s board cannot be held responsible for failing to detect the misconduct earlier. Investigators found that the executives actively withheld critical information, leaving directors with an incomplete understanding of the company’s financial exposures.

It was under these challenging circumstances that Board Chair Reuben Olifant acted with authority. Upon learning of the irregularities, Olifant moved quickly to suspend the implicated executives, engage legal counsel, and reported the matter to the SAPS. 

The board, under his leadership, also commissioned a broader forensic review of all contractors and clients funded during the relevant period to ensure comprehensive accountability.

The leaked report recommends criminal investigation, full tracing of all funder capital, and legal action to recover misapplied funds. These steps reflect both the seriousness of the misconduct and the board’s commitment to transparency and accountability under Olifant’s guidance.

ECRF’s ordeal underscores the risks of concentrated executive power and the potential for abuse when governance structures are circumvented. 

The SAPS have confirmed to The Star that they are investigating the CEO and CFO. 

This is a developing story.