Durban – A forensic accounting report into a Durban based property investment company has blown the lid off the allegedly fraudulently dealing of its former CEO and his son who blew R160m on luxury homes and expensive cars.
The report, leaked to IOL, pulled back the curtain on allegations of financial misconduct at Amaanat Investment Holdings (AIH) and has raised questions as to whether shareholders’ money is still in good hands.
AIH is a public company which offers shareholders a chance to invest in the property market.
The AIH board has blamed its former CEO Hussun Abdool Khalek (HAK) Omar, 68, of fraud and theft amounting to R160m over a 10 year period. HAK’s son Mohamed Hussun Omar is also a person of interest in the investigation.
AIH, which is represented by MS Omar of MS Omar and associates, claimed that HAK used the proceeds of his allegedly illegal activity to buy luxury homes and expensive cars.
But HAK Omar has denied the allegations made against him, calling the forensic report a distraction from the real issue at hand, which is a dispute for the money AIH owes him. He also said the scope of the investigation was flawed and therefore, so were its findings against him.
Author of the report, Eckhard Volker, a forensic accountant from Durban, did not want to comment on the report due to the investigation being ongoing. Volker did confirm that a case has been opened against HAK Omar at Westville Police station.
Further investigation revealed that MS Omar is the cousin of HAK Omar and was once his legal counsel.
HAK Omar is also the director of Kreston KZN, the auditing company for AIH.
BCA Chartered Accountants based in Durban are also implicated in the investigation. So too are Coral Asset Management, which manages the daily affairs of AIH’s investment properties.
AIH, Coral Asset Management and Kreston are all based at the same address in Westville.
“Based on our investigation to date, we are in a position to conclude that expenses of not less than R160m have been debited against Stated Capital over a period of approximately 10 years. A significant portion of these funds were utilised by Mr HAK Omar for his personal benefit.
“Mr HAK Omar was personally conflicted in his duties, where he personally affected incompatible functions, critically unminding the concepts of internal control, all for his personal benefit,” Volker said in the report.
Some of the findings in the report suggest HAK Omar allegedly spent R3m on property refurbishments, R3m on a flat in Umhlanga, Cars worth R4m and R16m on a house in Camps Bay.
The report also states that the Camps Bay house is now listed for sale at R21m.
Volker disclosed at the start of the report that its findings, to some extent, are subject to changes should new information arise.
“If any such information exists, we reserve the right to amend our report and its interpretation accordingly,” Volker said.
But HAK Omar did not take the allegations lying down. It was revealed that HAK and MS Omar met prior to the investigation to try and resolve the matter amicably. At the time of the meeting, it is believed that MS was HAK’s lawyer.
HAK disclosed information as per MS Omar’s questions without knowing it would later form part of the investigation.
HAK Omar’s lawyer, Fred van der Westhuyzen, of BDP attorneys in Tyger Valley responded to questions IOL posed to Omar about the allegations made against him.
“The amounts referred to in the report represents fees for services provided by Kreston KZN and its subsidiaries to AIH.
“The report conveniently looses sight of the fact that Kreston KZN rendered fees and effectively managed an investment group which grew into a R4.5bn fund over more than a 10-year period.
“In effect the forensic report is a guise to a fee dispute that in essence adversely effects all the shareholders and their interests.
“The allegations now levied against our client is an attempt by certain individuals who plan to strip the assets of AIH for their own benefit. These individuals choose to divert the attention away from their actions to hide their true intentions,” Van der Westhuyzen said.
He said AIH still owed his client R13.7m for services rendered.
Naran Maharaj, who is owner of BCA Chartered Accountants and also a person of interest in the investigation, told IOL he did not want to comment on the matter.
Coral Asset Management did not want to comment on the report as well.
Now Read Hussun Abdool Khalek Omar’s full response to the allegations below:
IOL