News24

Fidentia letter back-dated - witness

2012-11-29 10:25

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.

Comments
  • webstorm.isp.5 - 2012-11-29 10:32

    "He was arrested in 2007 in one of the biggest financial scandals South Africa has seen" , they not counting government scandals of billions are they?

      janice.mcmaster.92 - 2012-11-29 10:57

      Exactly! Spot on ready!!!

      silenta.solly - 2012-11-29 12:06

      Yes, just like they are not counting the apartheid government billions in fraud scandals

  • marlon.pillay.549 - 2012-11-29 10:55

    Soon Brown will be in Government (LMAO)

      Cherri - 2012-11-29 11:49

      Nah, he is in kindergarten compared to the ANC crooks.

  • JanGrimbeek - 2012-11-29 11:04

    "A further R11m belonging to the state-owned Transport Educational Training Authority (Teta) was used to cover the balance." Now who would have authorized this state funds to pay for private properties ? ... just a thought that came up in my mind.

      JanGrimbeek - 2012-11-29 11:11

      http://www.engineeringnews.co.za/article/transport-education-body-allocates-r193m-for-training-2006-07-14

      JanGrimbeek - 2012-11-29 11:25

      http://www.docstoc.com/docs/72949888/FIDENTIAS-STEVEN-GOODWIN-SENTENCED-TO-FIFTY-YEARS

      anthony.m.sheffield - 2012-11-29 11:34

      They are not state funds - they are funds held by a para-statal in its own accounts. The ex-CEO of TETA (already in jail) came to me at another SETA and tried to get me to move our funds into these "investments". Told him and his accountant that such a move would require Treasury approval - which they obviously hadn't got because Treasury would never have approved such an investment.

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