Mahendren Munsamy
Medical doctor Mahendran Munsamy, who has been described as having “a propensity to commit offences”, insists the graft charges against him for defrauding First National Bank and Sasol of R420 million are “an assault” on successful black petroleum entrepreneurs.
This week, Munsamy appeared in two different courthouses — the Johannesburg high court and the Johannesburg specialised commercial crimes court, sitting in Palm Ridge — on a raft of graft-related charges for allegedly swindling FNB and Sasol.
The state also accuses him of defrauding businessman Ravesh Moodley, who allegedly was duped into investing in a bogus petroleum venture.
Munsamy has several co-accused in his multiple cases, including more graft charges in KwaZulu-Natal; facing counts of racketeering, fraud, corruption, theft, money laundering, possession or use of proceeds of unlawful activities and assisting another to benefit from the proceeds of unlawful activities.
At the Johannesburg commercial crimes court on Wednesday, Munsamy testified under cross-examination during his bail application in the Moodley matter — where he is accused of stealing R7 million — that the charges against him were “an assault on black entrepreneurs in the petroleum industry”.
Munsamy was responding to questions from state prosecutor Richard Chabalala on why he believed he was innocent when there was “a case to answer”, given what the state contends is damning evidence against the doctor.
Munsamy said he was being “victimised” by a “nexus between the civil matters and criminal matters” that he is facing. He said this nexus was driven by the “consequences of anti-competitive behaviour of Sasol and [multinational chemicals firm] Chevron”, both companies having provided evidence on Munsamy’s alleged crimes.
Munsamy allegedly paid bribes of about R2 million to former FNB employee Paragasen Reddy, who apparently doled out R420 million in “fraudulent guarantees” between January and May 2011 to entities the state says are controlled by Munsamy. Munsamy allegedly received the money, bought fuel from Sasol, but did not pay for the purchase.
His company Gas 2 Liquids, supplied fuel to 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, according to the state’s evidence.
“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 an affidavit from Malini Mudaly, the head of legal in FNB’s premium division.
“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 added, alluding to the ongoing legal battle between FNB and Sasol.
But Munsamy said off-set agreements were a regular occurrence in the petroleum industry,and that the proceeds from the fuel he sold in Mozambique, which were channelled through Mauritius, were not an act of money laundering.
“With the black companies, it’s money laundering. With the white companies, it’s good business structuring,” Munsamy testified.
These criminal matters that have been brought up are being driven by people who don’t like me. Maybe your friends out there,” the alleged fraudster added, pointing at prosecutor Chabalala.
Asked by Chabalala who these friends were, Munsamy mentioned a few of the complainants against him in civil matters, as well as Moodley, who allegedly had R7 million stolen from him after investing in Munsamy’s venture to supposedly purchase 700 000 litres of fuel.
Munsamy was denied bail following his arrest last year, and is reapplying for it “on new facts”, among which was the mental health issues he said his wife was dealing with.
Munsamy said his wife was in hospital in June last year after “overdosing” on the anxiety prescription medication Valium following his incarceration. Munsamy, who has been in custody since January last year, pleaded to be released to take care of his spouse, who was apparently addicted to prescription medication.
But Chabalala, who presented evidence of Munsamy’s wife’s medical records, countered that the accused knew about his wife’s health addictions as far back as 2020, before his arrest. The prosecutor said the spouse was addicted to the opioid painkiller Pethidine.
“Your wife’s health issues are not new facts. You did not raise this during your first bail application [in January last year],” Chabalala said.
Munsamy insisted he had raised his wife’s health issues, but that this was overlooked by magistrate Emmanuel Magampa. This drew the ire of Magampa, who retorted that he did not deny Munsamy bail by ignoring his wife’s alleged health problems.
“The basis of the court’s findings [in denying you bail] was the propensity to commit offences,” Magampa said.
Munsamy is still in custody pending Magampa’s bail decision. His next appearance for the FNB and Sasol case will be on 13 March, when a trial date is expected to be set.
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