Hawks say arrests imminent in ECRF probe following forensic report

The Hawks have confirmed that arrests are imminent in their investigation into Enable Capital Receivables Finance (Pty) Ltd (ECRF), following the completion of a forensic report that alleges serious financial misconduct by the company’s former senior executives.

The Directorate for Priority Crime Investigation, known as the Hawks, is probing former ECRF chief executive Johannes Jacobus Coetzer and former chief financial officer Johannes Stephanus Olivier. According to sources, the investigation follows a forensic review that allegedly uncovered the misappropriation of institutional funding, the manipulation of financial records, and undisclosed related-party transactions.

A confidential forensic report compiled by BDO Advisory Services and finalised in June 2025 forms the foundation of the criminal investigation. The report alleges that ECRF executives diverted funds away from the company’s approved mandate, placing the business at risk of insolvency and potentially violating the Companies Act. The alleged breaches include reckless trading and failure to uphold fiduciary duties owed to the company and its institutional funders.

ECRF was established to operate strictly as an invoice discounting and receivables finance vehicle for fibre network contractors. Its mandate was to provide short-term capital against verified invoices, ensuring that funding was directed solely to clients’ verified receivables. Oversight was intended to be maintained by the company’s board and institutional funders.

However, investigators allege that a portion of the approximately R700 million raised from institutional investors was redirected into construction and infrastructure projects through entities linked to senior executives. These transactions allegedly occurred without the knowledge or approval of the board or funders, representing a significant deviation from the company’s stated operational model.

The forensic report identifies Isibindi Solutions (Pty) Ltd and Warstar Construction (Pty) Ltd as the main recipients of these redirected funds. According to the findings, more than R108 million was allegedly transferred to Warstar Construction with limited supporting documentation. By early 2024, outstanding balances linked to Warstar-related accounts reportedly exceeded R254 million, raising concerns about recoverability and the true financial position of the company.

Further allegations suggest that ECRF’s financial records were deliberately manipulated to conceal the company’s exposure. The report cites practices such as altering debtor ageing reports, reclassifying historical payments, and manually adjusting portfolio management data without proper audit trails. These actions allegedly prevented both the board and institutional funders from accurately assessing the company’s financial position and liquidity risk.

The forensic report also raises concerns about undisclosed conflicts of interest. Both Coetzer and Olivier allegedly held interests in Isibindi Solutions, which benefited directly from ECRF funding. The use of Warstar Construction as an intermediary for these transactions is flagged as potential self-dealing, highlighting serious governance concerns.

Importantly, investigators found no evidence implicating ECRF’s board of directors in the alleged misconduct. The report concludes that executive management allegedly withheld material information and provided misleading financial data, preventing directors from identifying the risks at an earlier stage.

After the irregularities came to light, ECRF board chairperson Reuben Olifant suspended the implicated executives, appointed external legal advisers, and referred the matter to the Hawks. The board has since commissioned a broader forensic review of funded contractors and clients to determine the full extent of the company’s financial exposure.

The forensic report recommends criminal prosecution, the tracing and recovery of all institutional funds, and civil recovery proceedings. The Hawks have confirmed that the investigation is at an advanced stage and that arrests are imminent.

The investigation into ECRF is closely watched by industry stakeholders, given the company’s role in providing specialised funding solutions to fibre network contractors and related infrastructure projects. Analysts note that the case underlines the importance of corporate governance, strict adherence to funding mandates, and robust oversight in receivables finance operations.

While the matter remains under investigation, it highlights the broader risks facing alternative finance vehicles in South Africa. The alleged diversion of funds and the manipulation of financial records demonstrate how breaches at the executive level can expose institutional investors to financial loss and operational risk.

The Hawks’ intervention reinforces the agency’s mandate to hold executives accountable for alleged financial misconduct and to ensure that institutional funds are protected.