R160m fraud: Father, son allegedly stole millions from investment company – Report

A forensic audit report of Durban-based investment company Amaanat Investment Holdings (AIH) revealed a father-and-son duo allegedly stole millions of rands from the company through fraudulent and unauthorised payments.

The former chief executive officer (CEO) and board member, 68-year-old Hussun Abdool Khalek (HAK) Omar was implicated, along with his 41-year-old son Mahomed Hussun Omar, who was a company director at the time.

Independent forensic investigation

In a circular to shareholders in the possession of The Citizen, AIH said the board of directors formally launched the independent forensic investigation in December 2021 into inter alia and multiple instances of misconduct on the part of both father and son.

According to the forensics report by Integrated Forensic Accounting Services – also in the possession of The Citizen – the matter dealt exclusively with the allegations of improper and unauthorised payments classified as Share Issue Expenses, of which a substantial amount was allegedly misappropriated by HAK Omar.

Expenses totalling R160 million

The report by Integrated Forensic Accounting Services revealed expenses totalling R160 million were debited against Stated Capital over a period of approximately 10 years.

Furthermore, related payments were made by Amaanat Investment Holdings to either the Kreston or the Kreston Agency account.

While the forensics report found the accounting records maintained by Kreston on behalf of AlH are inadequate and improper, the circular to the board members and shareholders expounded on the alleged corruption, stating the loot was also paid into the Mahomedy, Omar Paruk Agency account, and other related accounts which were controlled exclusively by HAK Omar.

Charges of fraud and theft

The forensics report revealed a significant portion of the millions of rands were utilised by HAK Omar for his personal benefit and that the contention of entitlement of the money as “anticipated fees” is unsustainable.

“Fees charged by Kreston to AlH were improperly invoiced and not appropriately supported; the charges were not authorised by the Board of AlH; the disclosure requirements for related party transactions were not met.”

“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.

“The shareholders were directly prejudiced by the actions of Mr HAK Omar and reasonable grounds exist to justify a criminal complaint against Mr HAK Omar, on charges of fraud and theft.”

Saps investigating case of fraud

Integrated Forensic Accounting Services also said the investment company should consider registering a criminal complaint with the South African Police Services (Saps), seeking further police investigation into the alleged fraud and corruption by HAK Omar.

“Bank accounts should be subpoenaed, to enable the investigation to undertake a flow of funds review, establishing the full extent of the alleged abuse, determining the final application of ill-gotten gains and identifying recoverable assets. A full and comprehensive civil recovery process should be applied to seek maximum restitution for the benefit of the shareholders of AlH.”

Hussun Abdool Khalek and Mahomed Hussun Omar have since resigned from the company.

Integrated Forensic Accounting Services recommended that key books of record, specifically including the Share Register, should be subjected to a comprehensive review to ensure that it is complete and accurate.

Alleged failure to cooperate

In the circular to its shareholders, the AIH board said it will take legal action as it deems necessary for appropriate relief including the recovery of all loss and damages sustained by the company against those who perpetrated the misconduct identified in the forensic report.

It said Hussun Abdool Khalek and Mahomed Hussun Omar had failed to cooperate fully with the investigation, had been obstructive and continued to present a false narrative.

Mahomed Hussun Omar told The Citizen they are meeting with their lawyers to discuss the matter.

“We are meeting with our legal team tomorrow regarding these allegations.”

The Citizen contacted two AIH board members for comment, but there was no response at the time of publishing this story.

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