/ 11 April 2012

FNB accused of covering up fraud syndicate

Fnb Accused Of Covering Up Fraud Syndicate

A Johannesburg entrepreneur has accused FNB of covering up fraudulent misrepresentation by one of its officials in a transaction that cost him R1.3-million.

FNB client Tamsanqa Moya, who had ordered vehicles from overseas for use in a bus transport venture, is suing the bank and a local car dealer for R6-million in connection with the costly transaction.

He believes that FNB is concealing fraudulent activities by one of its forex officials, whom he alleges is operating a syndicate with figures outside the bank.

The Mail & Guardian has seen a letter from the official concerned, Laureley Simpson of FNB’s branch at The Glen in Johannesburg, certifying that the bank had transferred R1.3-million to a company in mainland China for two 70-seater luxury coaches that never arrived.

FNB management has since said that Simpson issued the letter in error and that action has been taken against her. It has refused to provide further details.

It sent Moya a letter, seen by the M&G, saying that all records of the transaction had disappeared. Police say the absence of these documents is hampering their investigation.

Moya entered into an agreement with the dealer, Friedcorp 167 trading as Direct Car Sales, in October 2009 to buy the two coaches.
He says that Friedcorp, which claimed it was an agent for Chinese minibus manufacturer Shenyang Brilliance Jinbei Automobile, promised to deliver the vehicles early if he paid up front.

A R1.3-million global transaction was made from his FNB business account to Friedcorp, which also had an account with the bank.
When the coaches were not delivered, Moya said he terminated the agreement through his lawyer and demanded a refund.

In response, Friedcorp representative Mohamed Azhar Saloojee had shown him documents from China stating that the buses were in production.

In a letter seen by the M&G, Saloojee also said that when the coaches were ready, they could not be delivered in South Africa because they did not meet SABS standards and would have to be collected in Zimbabwe.

Moya was also shown the letter from Simpson confirming payment to the Chinese manufacturer. On the strength of the FNB assurance, Moya said he had entered into a second agreement with Friedcorp.

“I was told that if I cancel the deal I will lose about 30% of the money, which I couldn’t afford. I’ve been banking with FNB for almost ten years, so I assumed the deal was legitimate when they sent me a letter of confirmation.”

Moya said he had got “the shock of his life” when he contacted the Shenyang Brilliance Jinbei Automobile in March 2010 to inquire about progress on the coaches.

Revealing that the company does not manufacture coaches, Shenyang general manager Frank Qian denied receiving any order from Friedcorp or payment from FNB.

“I was furious and laid a complaint with FNB,” said Moya. “I also asked for a refund — but the bank wouldn’t help me.

“FNB is distancing itself from the matter and my fear is that this case could be closed after three years and I may not get a cent back,” he said.

He said he laid a fraud charge against Friedcorp with the police commercial crimes unit in Johannesburg.

The investigating officer, Captain Joel Ngobeni, told the M&G that no arrests were possible on the current evidence.

“The forex department should have invoices from the Chinese company stating what they would be exporting to South Africa. Those have to be filled in by the bank,” Ngobeni said. “We also need to establish if the money was definitely transferred to the said company in China for the buses.”

He said he had contacted the Chinese company, which said it only manufactured minibuses.

He added that it was “puzzling” that such crucial documents should disappear from the bank, especially in a context where one of its officials had given a false assurance that Moya’s R1.3-million had been transferred.

The Financial Intelligence Centre Act (Fica) requires banks to keep payment records for at least five years from the date on which transactions are concluded.

In another letter to Moya seen by the M&G, the bank said that after conducting its own investigations it had concluded that Simpson erred in confirming that the transaction was for the purchase of coaches in China. Simpson had not known the reason for the transfer, it said, and had relied mainly on a statement provided by Friedcorp’s owners.

It said it could not be held liable for Moya’s losses and would not involve itself further in the dispute, which was between him and Friedcorp.

In papers lodged with the South Gauteng High Court in Johannesburg, Moya is claiming a R1.3-million upfront payment and R5-million in damages in respect of the net profit he would have generated had the buses had been delivered on time.

FNB spokesperson Maryke Wessels said the bank does not believe it is liable for Moya’s losses. She declined to comment further as the legal case is still pending, but said the bank was cooperating with the police on the matter.

The M&G has tried for several weeks to contact Mohamed Azhar Saloojee on his cellphone, without success.

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