'RAF fraud attorney' out on bail

2001-07-16 13:47

Cape Town - Former Athlone attorney Hoosain Mohamed was on Monday released on R10 000 bail after a protracted hearing before magistrate Jackie Redelinghuys in the Wynberg Regional Court.

The magistrate said the main reason for granting bail was that Mohamed's trial was not likely to start before the latter part of 2002, and was then likely to last for at least a year.

Redelinghuys said it would be unfair to keep Mohamed in custody for such a lengthy period, because it would be impossible for him to prepare his defence while in prison.

Last week, Mohamed launched a bail application following his arrest in June on 183 charges of fraud, six of theft and one of attempting to defeat the ends of justice.

Mohamed is alleged to have embezzled millions of rands by way of unlawfully withholding money due to clients who had lodged contingency-based claims against the Road Accident Fund.

In terms of the contingency system, the client only pays an agreed amount if the claim is successful, but nothing if it fails.

The magistrate said he realised that the amount of R10 000 was laughable considering the huge amount involved - about R2.8 million.

Mohamed's assets seized

However, the court had to bear in mind that the seizure of Mohamed's property by the Asset Forfeiture Unit (AFU) on Friday, locally and overseas, had left the former attorney penniless.

It was also unlikely that Mohamed even had enough money to make bail.

The magistrate told Mohamed: "You will now have to rely on your family and friends for help, and this is their opportunity to prove their trust in you."

Redelinghuys ordered the state to re-approach the court to fix a more appropriate amount in the event of Mohamed's financial circumstances changing for the better.

He said that prior to last Friday's AFU swoop, the court had considered bail of between R200 000 and R500 000 as a more realistic sum.

The court also attached certain conditions and ordered Mohamed to report to the Athlone police every Monday.

Order to surrender passport

He must also surrender his passport and may not leave the magisterial districts of Cape Town or Wynberg without the written consent of the Office for Serious Economic Offences (OSEO).

Redelinghuys said that Mohamed was free to approach the court if consent to leave the two districts was withheld unreasonably.

The fifth condition was that Mohamed may not visit his former legal firm, H Mohamed and Associates, pending the outcome of his trial. He was also banned from communicating with potential witnesses in the case.

Any necessary communication with his former partners had to be through his legal representatives and only after written notification to OSEO.

"You [Mohamed] are not a fool, you know what all this means," the magistrate said.

Until his trial starts, Mohamed will have to make several brief appearances in the Wynberg Regional Court, as stipulated by the Criminal Procedure Act.

He will reappear on September 10.

- SAPA