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Glodina bosses in court over alleged fraud

27 May 2022 - 12:10 By TANIA BROUGHTON
Glodina bosses have appeared in court on fraud allegations. Stock photo.
Glodina bosses have appeared in court on fraud allegations. Stock photo.
Image: 123RF/Olivier Le Moal

The retail director and the accountant of KwaZulu-Natal-based towel manufacturer Glodina, which is in liquidation, have appeared in court on charges of fraud.

The Hawks said Eusuf Fehaaz, 42, and David Larkan, 58, both of Durban, appeared in the specialised commercial crimes court in Palm Ridge, Gauteng, on Wednesday.

“It was reported in October 2017 that they had misrepresented themselves and submitted a fraudulent audit report when applying for funding from the IDC [Industrial Development Corporation]. As a result, the IDC allegedly transferred about R35m into Glodina’s business bank account for development projects.

“Through internal forensic analysis, the IDC discovered that Glodina did not possess the R10m surplus in their bank account as indicated in their audit report.”

The R25m in the company’s bank account had subsequently been “restrained”.

Their attorney Emlyn Collins confirmed Fehaaz and Larkan had handed themselves over to police.

In an affidavit submitted in support of bail, Fehaaz said he intended to plead not guilty.

“I am not aware of the precise allegations against me, except that it emanates from a business deal with the Industrial Development Corporation. I, however, emphatically deny that I have been involved in any crime.”

The alleged offence occurred some years ago and Glodina was now in liquidation after being in business rescue.

“I have been advised by the business rescue practitioner to open a charge of fraud against the IDC for R25m. The entire incident, together with various others, are being dealt with by the liquidator and an inquiry into the matters is being held soon,” he said.

My clients have been falsely accused and once the matter is ventilated it will evidence their non-involvement and innocence
Attorney Emlyn Collins

Larkan also indicated he would plead not guilty to the charges.

Fehaaz was granted bail of R10,000 and Larkan R5,000.

They will appear in court again at the end of June.

The Hawks said it was expecting a “well-deserved” conviction in the matter and accused the two men of “allegedly stealing from other aspiring entrepreneurs who need funding”. 

Collins told TimesLIVE: “While I don’t want to comment on either the merits of the case or my clients’ defence at this juncture, I am instructed that my clients have been falsely accused and once the matter is ventilated it will evidence their non-involvement and innocence.”

Glodina, which once formed part of the Steinhoff Group, operated from a factory in Hammarsdale.

After being placed in business rescue, the business rescue practitioner applied to the Pietermaritzburg high court in 2018 for it to be wound up, saying there was no prospect of rescuing the company.

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