Mahendren Munsamy
Medical doctor Mahendren Munsamy, accused of defrauding First National Bank and Sasol of R420 million through a cross-border petroleum syndicate, is fighting for bail in a separate R7 million fraud case.
So intricate is Munsamy’s alleged scam that Sasol and FNB are now embroiled in fractious litigation over the missing millions, after FNB gave a company linked to the doctor a combined R420 million worth of “fraudulent guarantees” for the purchase of “large volumes” of fuel from Sasol, which allegedly did not receive payment for the sale.
The guarantees were allegedly issued by former FNB employee Pragasen Reddy from January to May 2011 after Munsamy supposedly bribed Reddy with about R2 million, which was allegedly channelled through an account opened in Reddy’s mother’s name.
The alleged R420 million theft is detailed in an affidavit filed by Malini Mudaly, the head of legal in FNB’s premium division, forming part of a Johannesburg high court fraud, racketeering and money laundering case, among other charges, against Munsamy and a string of other co-accused, including convicted gangster and Czech fugitive, Radovan Krejcir.
According to the state, luxury properties in the upmarket Johannesburg northern suburbs of Sandhurst, Hyde Park and Morningside were bought by Munsamy and his family from the proceeds of the apparent theft, which was allegedly laundered back into South Africa from Mozambican fuel sales through Mauritius.
Court filings show that Munsamy is a director of GTL Direct, which is based in Mauritius and takes in the proceeds of the fuel sales.
During the first half of 2011, Munsamy’s company — Lavela — received R310 million in FNB guarantees to buy fuel from Sasol.
Lavela was then meant to supply the fuel to “another entity controlled by Dr Munsamy” called Gas 2 Liquids, reads Mudaly’s statement.
Gas 2 Liquids sold fuel to chemicals giant Chevron, which could not pay an amount owed to its supplier in June 2011, whereafter Gas 2 Liquid decided to off-set its debt by buying fuel from Chevron and “exporting” it to Mozambique.
“Through this transaction, Dr Munsamy diverted a large payment that should ultimately have gone to Sasol. The volume of fuel shipped to Mozambique was 17.5 million litres and the [value involved] was some R190 million,” reads the affidavit.
It added that a further R110 million in “fraudulent guarantees” were given by FNB in April 2011 to a company called Imvuselelo Petroleum and Gas, which also supplied Gas 2 Liquids, bringing the total to R420 million.
“Sasol then claimed from the bank on the strength of the guarantees and the bank resists payment on the basis that the guarantees are fraudulent,” Mudaly stated.
On 13 January, in the Johannesburg specialised commercial crimes court, Munsamy wrapped up his evidence-in-chief. Munsamy testified for three days during the bail application for the 35 counts of fraud, theft, money laundering, possession or use of proceeds of unlawful activities, and assisting another to benefit from proceeds of unlawful activities.
(Graphics: John McCann/M&G)
Munsamy was arrested in January last year, and is still in custody, for supposedly swindling businessman Ravesh Moodley out of a combined R7 million from November 2017 to September 2018.
Moodley invested the money in an alleged bogus petroleum venture to purchase 700 000 litres of fuel.
In the R7 million matter, Munsamy is charged alongside four of his employees and associates — Elliot Mashapa, Trevornin Thambi, Tanya Wiener and Zunaid Moosajee Patel — all of whom are out on bail.
According to the National Prosecuting Authority charge sheet, Munsamy essentially duped Moodley to invest about R4.5 million in an entity known as Xanado of which he is a director to purchase 700 000 litres of fuel that did not exist.
“Moodley was also asked or instructed to pay an amount of R509 000 [into Xanado’s] Standard Bank account. It was misrepresented that the R509 000 would serve as working capital.
“The R509 000 was appropriated by accused one (Munsamy) and other persons nominated by accused one,” the charge sheet reads.
Moodley was led to believe that he would reap a monthly income of R150 000 from its investment.
It added that, between March and August 2018, Moodley invested a further combined R2 million into Xanado “to pay clearance fees” for the fuel, among other alleged misrepresentations.
“Moodley [and his company] Two Line Trading suffered actual and potential financial losses as a result of the misrepresentations made to Moodley and Two Line Trading by [all five accused] and/or other persons who acted in concert with the said accused persons.”
But Munsamy dismissed Moodley’s allegations against him during the bail testimony, accusing Moodley of beating him up in March 2021 damaging his eye and breaking his ribs.
“There was no misrepresentation. He [Moodley] was upset that it was taking too long to pay him,” Munsamy testified.
He said he had opened a case of assault at the Bramley police station against Moodley. Munsamy added that his eye socket was broken by Moodley and handed a medical document to court stating that he was at risk of becoming blind.
“To date, it’s very difficult for me to get updates from the investigating officer as to why this [assault] case is not progressing at this point in time. At St John’s eye clinic [in Soweto], they picked up that I have a glaucoma developing,” Munsamy said.
On the alleged Johannesburg high court fraud case involving FNB and Sasol, Munsamy rejected those charges as well, asserting that the state had a “non-existent and weak case” against him.
“Your honour, the high court matter sounds more serious, but I am only implicated in one statement [the Mudaly statement] out of 40 000 pages, a majority of which were bank statements.
“I fail to see where I’m involved and where the state is going to have a successful case against me,” Munsamy asserted.
His views were disputed in Mudaly’s affidavit, which detailed how Munsamy used another of his entities — the South African Petroleum and Energy Guild, which is a non-profit company — to allegedly launder the proceeds of his fuel sales in Mozambique to Mauritius, then back into South Africa.
FNB employee Reddy, who allegedly authorised the R420 million guarantees, “conceded” that he forged the signature of Pule Mahlangu, his bank colleague, to fool the financial company into believing that Mahlangu had also authorised the payments.
“Litigation between Sasol and the bank has arisen because [Munsamy-owned] Lavela purchased fuel from Sasol and failed to pay for it. Lavela is in liquidation.
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