INYATSI DEFRAUDED E1.7 MILLION

MBABANE – A forensic investigation into local construction giants Inyatsi Construction Limited’s E11.5 million water scheme project in Kwaggafontein, South Africa, has unearthed a litany of financial irregularities.

The audit, which was carried out by Nett Rand – a South Africa-based financial solutions institution, found that an amount of E1 673 516.00 had gone missing and three senior employees were the main suspects.
The suspects, who resigned from the company in the midst of the investigation, have been identified as Muhammad Amod, whose position was that of Finance and Logistics Manager; Christopher Draper, who was Senior Estimator and Collen Nkatingi, the then Accountant.

After the investigation, Nett Rand made a recommendation that ‘Inyatsi pursue criminal prosecution against the perpetrators’.
Inyatsi conducted the water scheme project in partnership with VEA Roads Maintenance & Civils (Pty) Ltd.

invoices altered

The audit found that regarding this project, certain payments were made to subcontractors, where invoices were allegedly altered and payments made into banking accounts other than those of the subcontractor concerned.
These payments included E13 796 made to Invicto Group on April 28, 2017, E35 016 made to Artwell Security & Projects on May 5, 2017,  E40 000 made to Mosa ke Kgaogelo Trading,  and E185 492 made to Ovoscape on July 3, 2017, bringing the total amount to E274 303.

“All the above-mentioned payments have been made into FNB account no 626 055 03392 and which account details we are in the process of tracing. All the above mentioned payments were authorised and released for payment by Martin Ferreira - MD Inyatsi SA. In addition, we have independently verified with each of the subcontractors listed above that the banking details are not that of the subcontractor concerned,” reads the audit report.

non-project related expenditures uncovered

The investigation also uncovered non-project related expenditures, where invoices were also altered and presented for payment and paid into an account held with Capitec Bank.
These payments, amounting to E58 194, included E15 160 allegedly made to Danierol Projects (Pty) Ltd,  E33 034 allegedly made to Mandab Trading Enterprise CC, and E10 000 was allegedly made to Tsidiso Trading Enterprise.
Also, it was found that invoices were allegedly altered and presented for payment and ultimately paid into FNB account No. 626 055 03392 amounting to E107 353.

These payments were allegedly made to Okhele Business (E16 325), Hei Way Supply (Pty) Ltd (E32 479), Hei Way Supply (Pty) Ltd (E32 479), Hei Way Supply (Pty) Ltd (E14 418) and Hei Way (Pty) Ltd (E11 652) between March 2, 2017 and September 19, 2017.
Again, Ferreira allegedly authorised and made the above-mentioned payments.

Investigators unable to verify about 150 payments

On other payments, the audit identified an invoice in the name of Maatla Rena Trading & Projects, which was altered to reflect the banking details of Ovoscape.
“Payment in the amount of E83 705 has been made to the specified Ovoscape account with the proof of payment reflecting Maatla Trading as recipient and the invoice number. as the reference. On further investigation, it was noted that an invoice to the same value has also been issued by Ovoscape. We have requested confirmation from Ovoscape of receipt of such amount but have not as yet received any reply,” states the report.

Post your comment

Your name:

Your e-mail address:

Add your comments:

Please enter the code you see in the image:

Image:

Code: