Dodgy errands cited in court

An employee accused of defrauding security tycoon Roy Moodley of millions has alleged that he often delivered alcohol and large amounts of cash to Edward Zuma, the son of President Jacob Zuma, and to Lucas Ngobeni, the husband of KwaZulu-Natal police commissioner Mmamonnye Ngobeni.

The unexpected allegation was put to ANC funder Moodley at the Verulam Magistrate's Court on Wednesday by attorney Chris Gounden. The latter is representing Mohammed Shaik, who is one of five ex-employees accused by Moodley of defrauding Royal Security of R5-million.

The security boss accused the five of assigning too many guards to a job and siphoning money to personal accounts.

Shaik's co-accused are Bongikosi Isiah, 40, Devraj Ramalingham, 61, Sandra Reddy, 42, and Yarnel Munsamy, 37.

On Wednesday, Gounden put the allegation to Moodley that Shaik had delivered money and alcohol to Zuma and Ngobeni. He explained the reason for his line of questioning was to establish the degree of trust that Moodley had in Shaik.

Moodley, under cross-examination, looked down and pushed his chair back before vehemently denying the suggestion.

"That is not true, show me the proof of that," he said.

Neither Zuma nor Ngobeni responded to queries about the allegation.

Gounden told Moodley although Shaik was an inspector, he also ran errands that included deliveries and even buying lunch for the bosses.

In court, Moodley claimed that Royal Security had an income of more than R300-million a year and conceded that he did not get involved in the actual running of the business.

"I can't account for everything that goes on in this business as I have many companies. I'm just the owner," he told the court.

The matter dates back to 2010, when Moodley was made aware by an anonymous caller that the boyfriend of one of his employees, Sandra Reddy, was driving a Mercedes-Benz.

"I found it strange. Since he was unemployed, how he could afford the car, so I started investigating Sandra," said Moodley.

In an affidavit, Moodley said he was surprised at Reddy and her boyfriend Nishal Singh's lavish lifestyle. "I found out that Nishal's bank account detail was listed as a fictitious security guard's name and that money was being transferred into his account. All the other accused had a hand in the fraud too," he said.

Co-accused Munsamy also alleged Moodley had made sexual advances towards her during her employment at Royal, something he outright denied.

Shaik's attorney asked Moodley how he could be certain of the alleged fraud when he was hardly ever at the office. Moodley said he was kept abreast of things by his accountant.

It was also revealed in court that between 80 and 100 guards were dismissed unfairly from their employment at Royal Security during 2010 and later reinstated by the Commission for Conciliation, Mediation and Arbitration (CCMA).

Moodley said existing staff were terminated with immediate effect to make way for the reinstated staff.

"If the CCMA wanted them in, then the existing staff had to go, otherwise I'm taking money out of my own pocket to pay," he said.

The matter has been adjourned until March 14 for further evidence.