Businessman, accountant arrested for R35m IDC fraud

• Published date: 26 May 2022
• Publication title: South African Official News

Gauteng Hawks head, Major General Ebrahim Kadwa, has praised the investigation team for a major breakthrough on the apprehension of two fraud accused in relation to approximately R35 million defrauded from the Industrial Development Corporation (IDC).

In a statement Hawks spokesperson, Captain Ndivhuwo Mulamu, said the investigation came after reports in 2017 suggested that the retail company director, Eusuf Fehaaz (42) and his accountant, David Larkan (58) misrepresented themselves and submitted a fraudulent audit report when applying for funding from the IDC.

'As a result, the IDC allegedly transferred approximately R35 million into the accused retail company's business bank account for development projects,' she said.

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.

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