Key Points:
- Authorities arrested one director in connection with the fraudulent R1 million overdraft application.
- A year-long investigation led by the Hawks uncovered falsified financial documents.
- The suspect is scheduled to appear in court on May 5, 2025.
Background of the Fraudulent Overdraft Application
The two men co-direct two companies that were established in 2011 and 2013. Authorities say the investigation began after the bank rejected an overdraft application in 2023 for the second company, which the men registered in 2013. The bank declined the application because the company had an unstable financial position.
Falsified Documents Submitted for Overdraft Approval
One of the directors, a 43-year-old man, allegedly resubmitted the overdraft application. He used falsified documents to do so. These documents overstated the company’s profits and concealed tax liabilities owed to the South African Revenue Service (SARS). The bank approved the overdraft for R1 million based on the fraudulent information.
After the Hawks discovered the discrepancies, they took over the investigation.
Arrest and Legal Proceedings
After a year-long investigation, the Hawks executed a warrant for the 43-year-old man’s arrest on May 2, 2025. The investigation involved multiple specialized units, including Serious Corruption and Serious Organised Crime Investigations. Authorities arrested the suspect in Brackenhurst, near Alberton, Gauteng.
The man will appear before the Evander Magistrate’s Court on May 5, 2025.
Hawks’ Commitment to Combating Financial Crime
Brigadier William Mokonyama, acting provincial head of the Directorate for Priority Crime Investigation in Mpumalanga, praised the Hawks’ work. He stated, “We have a dedicated team on the ground. They are committed to uncovering criminal activity and bringing perpetrators to justice.”
The investigation is ongoing. Authorities are working to identify other individuals involved in the fraud scheme.
