Tiger Brands, South Africa's largest food producer, is pursuing a multimillion-rand claim against its former procurement manager Derrick Sandragasan for alleged collusion, siphoning more than R50m from the company.
Tiger Brands, which owns household brands such as Oros, Jungle Oats and Tastic, said its investigation has shown that Sandragasan’s relationship with one of the group’s former suppliers, Nurscon, was a conflicted one.
It said the investigation found Sandragasan’s daughter worked for Nurscon while the company was doing business with it, and that its supplier paid for Sandragasan and his family’s trip to Dubai for his 50th birthday, and a further family trip to Mauritius.
Tiger Brands alleges that in 2017-22 Nurscon sold it packaging for its products such as Tastic and Albany Tinkies at prices that were not market-related based on the relationship it had with Sandragasan, resulting in an overpayment of R56.4m.
Sandragasan, who worked for the JSE-listed group for more than three decades, resigned in January 2022 before facing a disciplinary hearing.
Business Day established that Sandragasan was one of three senior employees suspended by Tiger Brands in December 2021 on allegations of “procurement irregularities” involving a supplier.
Nurscon supplies other food producers in South Africa. Its website lists some of South Africa's largest fast-moving consumer goods firms as its clients, including Premier Foods, Rhodes Group, Pioneer Foods and Bliss Brands. Nurscon was established in 1997 by the Dosani family, which still runs the business.
Nurscon financial director Suhel Dosani denied the findings of the Tiger Brands investigation, saying the company was a victim of a witch-hunt.
“Regarding alleged benefits received by Mr Sandragasan, Nurscon categorically denies any involvement in a manner that could be construed as improper,” Dosani said.
“We deny any conduct that could be deemed improper or in contravention of any ethical or legal obligations. We are victims of a witch-hunt with unfounded and baseless accusations that have been thoroughly investigated by the police and found to be not worthy of any further entertainment by the authorities.”
Mr Sandragasan has been the victim of a witch-hunt by his former employer and has endured numerous unfounded accusations levelled against him
— Sivi Pather, attorney for Derrick Sandragasan
Sandragasan’s attorneys also denied the allegations levelled against their client.
“Mr Sandragasan categorically denies any involvement in a manner that could be construed as improper or as giving rise to a conflict of interest. All travel arrangements and events related to Mr Sandragasan’s family were undertaken in compliance with relevant policies and were above board,” Sivi Pather said, adding he could not comment on the alleged employment of his client’s daughter by Nurscon.
“At this stage, we cannot comment on this matter, as details pertaining to the employment relationships of Mr Sandragasan’s family members form part of the ongoing litigation.
“Indeed Mr Sandragasan has been the victim of a witch-hunt by his former employer and has endured numerous unfounded accusations levelled against him, as a result of which his pension fund benefits have been withheld and he has been subjected to severe prejudice and discrimination in seeking further employment.”
Tighter controls
Tiger Brands has had to tighten its internal controls in recent years as some employees collude with suppliers to loot the JSE-listed group.
Business Day reported a year ago that the company’s erstwhile financial manager, Gonaseelan Govender, had used an entity called Jocatus Transport, a company linked to him, as a front to steal more than R110m.
Jocatus, with Govender’s associate Savithree Samuel as its sole director, issued 60 invoices to Tiger Brands in 2009-14, claiming to have an enterprise development deal with the group.
Tiger Brands paid Jocatus nearly R2m a month, totalling R121.6m, for work not done.
Govender, who committed suicide shortly after the graft was discovered, forged a contract between Tiger Brands and Jocatus and facilitated and approved payments to the entity which did not do any work for the group.
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