Probe fund managers, says curator

2017-09-03 06:00
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A forensic audit must be conducted for all funds received and dispersed by a fund administrator, exposed by City Press for failing to account for more than R220m belonging to descendants of mine workers.

The report, by curator Juanito Damon, said missing funds could possibly be recovered from directors, previous management, trustees and various service providers to Bophelo Benefit Services (BBS) and Bophelo Beneficiary Fund (BBF).

Both entities are subsidiaries of Mvunonala Holdings, which has been bought by Vele Investments.

Following City Press’ reports in May of how BBF had cooked its books after it could not account for R220m in beneficiaries’ money, both BBF and BBS were placed under curatorship by the Financial Services Board (FSB).

Damon’s report, released on the FSB’s website on Friday, recommends the appointment of forensic auditors to “investigate the inflow and outflow” since the inception of both BBS and BBF.

Over and above directors and previous management from which missing funds could be recovered, Damon suggests the recovery of:

- Funds paid for investments to certain external individuals and institutions;

- Cash payments made to external parties and entities;

- Payments made towards the renovations and refurbishment of 72 Grayston Drive in Sandton;

- Properties invested with funds from either BBS or BBF without any value to either entities;

- Share purchases paid for with funds from BBF and BBS in external entities without any value to either entities; and

- Property and vehicles purchased for directors, management and external parties.

Damon further found that both BBF and BBS did not own any properties that it claimed, in its financials as reported by City Press in May, were investment properties.

“The auditor has also not provided supporting documentation with regards to investments made to Mvunonala Properties,” Damon wrote.

This despite the fact that the February 2016 Audited Annual Financial Statements indicate more than R255m was invested in Mvunonala Properties, which has no properties registered in its name or any other entities in the group.

“We are investigating this matter and will report more fully on it in the next report.”

Read more on:    audit

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