R1.4m bond application caused suspicion

2015-01-14 20:23
<a href="http://www.shutterstock.com">Shutterstock</a>

Shutterstock

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

Cape Town - An application for a R1.4m bond for a home priced at R820 000 created a suspicion of fraud, the Bellville Specialised Commercial Crime Court in Cape Town heard on Wednesday.

FNB forensic investigator, Spring Thaba, was asked by defence attorney Andre Pienaar what caused his interest in a bond application lodged by businessman Akhila Gaji in his nephew's name.

"I found it strange for the bank to be paying out so much money - this came to me like a red flag," Thaba replied.

Gaji, the owner of Siviwe Funeral Services, lodged an application for the R1.4m bond with FNB, in his nephew's name.

The arrangement was that the nephew, who had no interest in the house in question, would receive about R100 000 from the R1.4m, to start his own business.

The nephew, who knowingly allowed the bond application to be lodged in his name, with false information, is currently in prison for his role.

Prosecutor Ezmeralda Johnson alleges Gaji falsely stated in the application that his nephew was the manager at the funeral business, earning a R39 890 monthly salary.

Gaji allegedly included in the application a false salary slip in his nephew's name.

Thaba said FNB bond applications were electronically processed and automatically granted "in principle". He then chose any at random for investigation.

The unusual amount of the Gaji application piqued his interest, and his investigation revealed that the nephew's bank statement, required for the loan, was fraudulent.

"Our strategy is to minimise fraud, and to send out the message to fraudsters that we are watching them," Thaba said.

He said he duped the nephew into going to the bank's attorneys to sign registration documents, and arranged for the police to arrest him on arrival.

The nephew "spilled the beans" to police as he protested his innocence, he said.

Questioned by the magistrate, Thaba said the electronic system "only looks at amounts, but not if the application is fraudulent".

He said there was no one at FNB to check the authenticity of applications. This was only done if an application landed on his desk.

The case was postponed to 13 April.

Read more on:    fnb  |  cape town  |  fraud  |  crime

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.
NEXT ON NEWS24X

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
13 comments
Comments have been closed for this article.

Inside News24

 
PARTNER CONTENT
INFOGRAPHIC: New thinking required for retirement

Everything we believe about retirement is fast becoming outdated.

PARTNER CONTENT
WATCH: How education can change a life

A university education gives students the chance to create a better future for themselves, their families and to opportunity achieve their dreams.

/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.