Company revived for trial

2014-02-26 00:00

PIETERMARITZBURG security company boss Mahomed Yacoob obtained a high court order yesterday to re-register his company, Khuselani Security and Risk Management Services, so that he and it could face criminal charges.

The company was placed under voluntary liquidation in January 2010.

The application was launched on a “semi urgent” basis yesterday because Yacoob said he was negotiating a plea bargain with the state over tax evasion charges. He said the state prosecutor said he could not plead on behalf of an entity that had been dissolved.

He said it was agreed by the South African Revenue Service and the state that the company would be restored and that charges would then be levelled against it. Yacoob said in his affidavit that he settled all amounts owing to creditors of Khuselani, including a payment of R9 444 412,19 to SARS in March last year.

Yacoob laid the blame for the financial woes of Khuselani Security and Risk Management at the door of the company’s former financial manager, Robin Hazell, who committed suicide in November 2009. “At the date of the commencement of liquidation [of Khuselani], it was believed that the debt owing to SARS was R274 031,49,” he said.

Following a “protracted audit investigation” it emerged that SARS was owed the R9,4 million, he said.

Yacoob added that although the amount was considerable, it “didn’t surprise him” because by then it had been established that “Hazell was struck from the roll of attorneys and had orchestrated the Masterbond fraud”.

The Masterbond fraud in the 1990s involved more than R600 million, most of it from pension funds. Three directors were sentenced to 10 years each in jail for the scam.

He said he hadn’t been aware of this when he and Hazell acquired the Khuselani business in 2006.

“I became the sole director. Hazell was the chief operating and financial manager,” he said.

Yacoob said he focused on marketing the security company while Hazell “took over full financial control”.

“In 2009, I took a decision to slip away from the entity as I had commenced another security company … My new entity was much larger than [Khuselani],” he said.

Mohammed Talha Suyee had substituted him as director, and he and Hazell thereafter ran the daily affairs of Khuselani “at their sole discretion”, said Yacoob.

After Hazell’s death, it was found that the financial records were in “shambles” he said. Suyee had noticed, while “gathering documents” in Hazell’s office, that there was “serious mismanagement and/or maladministration” in Khuselani’s financial affairs.

Acting on legal advice, they applied to place the company under voluntary liquidation, which was done on January 25, 2010.

Yacoob said due to circumstances unknown to him the criminal charges against him were instituted a year after he had settled the outstanding amount with SARS.

He was then charged in his personal capacity and not as a representative of the company, because the prosecution believed an entity that had been dissolved could not be charged.

The criminal case is set down in the regional court on March 12.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.