R15m siphoned from JSE-listed company

A subsidiary of African Equity Empowerment Investments (AEEI), a JSE holding company majority-owned by a vehicle owned by the colourful Dr Iqbal Survé, has seen a large sum of money transferred from its bank account in an apparent fraud.

According to an announcement to the JSE on Monday, AEEI subsidiary Premier Fishing and Brands was “the subject of a fraud that resulted in the transfer of $820 000 (about R15 million) from its bank account to a third party”.

In its annual financial statements published in December, it disclosed that this occurred “on or about 15 November”.

In December, the group noted that “a criminal case has been opened with the South African Police Service”. It also said there “are various investigations taking place, including with the view to instituting disciplinary proceedings against one or more company employees, and efforts are being made to recover the funds”.

‘Appropriate action’ taken

In Monday’s announcement, which refers to the events obliquely as a “cybercrime at subsidiary”, it confirmed that “following a thorough investigation and disciplinary proceedings, the CEO of Premier Fishing was found guilty of negligence, and appropriate action has been taken in this regard”.

The announcement is not clear on whether the CEO of this subsidiary has been fired or fined. It says, “efforts to recover the misappropriated funds are ongoing”.

Premier Fishing itself had been listed on the JSE until last year, when AEEI bought out minorities and delisted the subsidiary. Survé’s Sekunjalo Investment Holdings owns 70.6% of AEEI, while two opaque investment entities, Miramare Investments and Altopiano Investments, each own a further 5%.

Miramare was a shareholder in Ayo Technology Solutions, another entity with Survé’s Sekunjalo as a major shareholder, and was mentioned in a report about possible market manipulation in 2019.

Sooren Ramdenee, who was the subject of the “appropriate action” due to “negligence”, was appointed CEO of Premier Fishing in June 2022.

He was only in this role for two months of the last year in which Premier was listed. The previous CEO was paid R2.8 million in 2020 and R3.9 million in 2019 (he resigned in early 2020).

What is astonishing is that Premier reported a profit before tax of R80 million last year. That means the alleged fraud, where money was siphoned from its account, is about 20% of annual profits.