Johannesburg - The Financial Services Board (FSB) said on Wednesday it would investigate its former chief financial officer Dawood Seedat for alleged corruption.
It said in a statement: "The investigation is so thorough that it will include a full internal audit supported by the office of the Auditor General. If any finding is made, a full forensic investigation will be conducted."
The allegations were deeply concerning for the FSB.
"We will continue to require from our employees the highest standards of honesty and integrity."
The FSB said in statement issued on 13 June that Seedat had resigned following "corruption allegations that have been levelled against him in his personal capacity".
On 20 June, The Star reported that Seedat had been accused of demanding millions of rands in bribes to make an audit disappear.
Africa Cash and Carry chief executive Edrees Ahmed Hathurani reportedly said in an affidavit that he was told in June last year that Seedat was investigating his business.
At a meeting, Seedat reportedly told Hathurani he could use the SA Revenue Service (Sars) and the FSB to close down the business.
Hathurani was then told to pay R12m to a Sars consultant. He reportedly made several payments between June and November last year, including some to Seedat personally, according to The Star.
The last two payments were recorded on video and one reportedly showed Seedat accepting two boxes containing R1.5m as well as R500 000.
The FSB said Seedat's alleged actions fell outside the FSB's regulatory work and related to his knowledge of the country’s tax regime as a result of his past employment at Sars.
"Africa Cash and Carry is not an entity regulated by the FSB.
"The FSB is subject to very strict legislative secrecy provisions that ensure that the information at its disposal is only used for regulatory purposes," it said.
Before Seedat resigned, he retroactively disclosed to the FSB that he had done consulting work for Africa Cash and Carry.
"Employees are required to disclose to the FSB any outside business interests, which was never done by Mr Seedat before doing business with Africa Cash and Carry," the FSB said.
"The FSB contracts of employment and human resources policies categorically prohibit employees from having any direct or indirect interest in entities regulated by the FSB."