Fidentia letter back-dated - witness

2012-11-29 10:25
J Arthur Brown (File, Sapa)

J Arthur Brown (File, Sapa)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Cape Town - A letter was backdated three years to substantiate why ex-Fidentia boss J Arthur Brown spent an investor's funds on beach houses, it was reported on Thursday.

This was said by chartered accountant and former Fidentia financial director Graham Maddock in the Western Cape High Court on Wednesday, the Cape Times reported.

He testified that R800 000 of Fundi Projects' funds were used as a deposit on two Cape Town houses - one in Sunset Beach and the other in Milnerton.

A further R11m belonging to the state-owned Transport Educational Training Authority (Teta) was used to cover the balance.

Maddock said the houses were in the name of a trust of which Brown had control. Brown lived in the one house and used the other as a guesthouse.

He told the court that Brown's associate Steven Goodwin wrote a letter to substantiate why the funds were used to pay off the properties, dating it 13 May 2003 when it was actually written in 2006.

He reportedly acknowledged that the letter was written because Fidentia had been under investigation by the Financial Services Board at the time.

Brown faces four counts of fraud, two counts of corruption, one count of money-laundering and two counts of theft.

He was arrested in 2007 in one of the biggest financial scandals South Africa has seen.

The State alleges that Brown ran a pyramid scheme and used investors' funds for his personal gain.
- SAPA
Read more on:    fidentia  |  j arthur brown  |  cape town  |  corruption
NEXT ON NEWS24X
SHARE:

Read News24’s Comments Policy

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
10 comments
Add your comment
Comment 0 characters remaining
 

Inside News24

 
/News

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now!

Kalahari.com - shop online today

Camping gear!

We’ve got all your camping must have’s right here at mind blowing low prices. Check them out now!

Herbex – buy 3 & get 1 free!

Fat burn packs, appetite control chewies, stretch mark cream and more. Offer valid while stocks last. Shop now.

30% off Jinger Jack handbags

Spice up your wardrobe and save 30% on stylish Jinger Jack handbags. Offer valid while stocks last. Shop now!

Buy 3 books & pay for 2

The cheapest of the 3 books will be free. Offer valid while stocks last. T&Cs apply. Shop now!

Deal of the week!

Hisense 40” Full HD LED Television now R3999. Offer valid while stocks last. Buy now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Horoscopes
Aquarius
Aquarius

Mercury has moved into Libra which adds a more social energy to the way you can communicate and connect things. Today is about...read more

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.