Mmatjanyana Gladys Matitoane (53), and Lucas Lefu Tseki (42), representing Southern Place Group (Pty-Ltd) appeared before the Palm Ridge Specialised Commercial Crimes Court on 10 August 2022 on charges of theft and fraud.
This follows the initial arrest of Harvey Sicelo Buthelezi (50), in July this year on the same matter. Buthelezi is a director for Energy Fabrication (Pty) Ltd which embarked on joint venture with Southern Place Group (Pty-Ltd) in 2017.
The Hawks investigation revealed that the Directors acting in concert allegedly approached the Industrial Development Corporation (IDC) for assistance with a loan amounting to R185 million.
The loan was meant to fund a new company which would specialise in heavy steel constructions. The agreement between the parties and IDC was approved on the basis that the amount was to be divided into three aspects, property loan, working capital and wiping of companies debts.
The credit was approved on 16 October 2017, by the IDC and the money was paid on the 28 March 2018. The directors received the money and utilised it for personal gain and leisure which was a breach of the contract.
The IDC has suffered a loss of R185 million as a result.
The matter was reported to the Hawks’ Serious Commercial Crime Investigation team in May 2021, this has now culminated in the arrests of the trio.
All three are out on R20 000-00 bail each pending their next court appearance on 13 September 2022.
