R2m missing from company in middle of fronting scam

Statements show Mille Net flouted the law

ORE than R2 million disappeared from the account of a medical supply company at the centre of a R160m fronting scam a month after a domestic worker, who was appointed director without her knowledge, rejected R3m to walk.

The Star can today reveal that the money was withdrawn from Mille Net Imports’ business account or electronically transferred to unknown private accounts between December last year and February.

The embattled thermometer supply firm’s financial statements and other records show that the money found its way out of its account through several cheque withdrawals.

This took place a few weeks after Elizabeth Tsebe turned down a settlement offer from her co-director Corrine Ferreira’s lawyers, Maritz Smith Van Eeden, on October 31.

Instead she approached the court and demanded R10m in unpaid salaries and the value of dividends for her shares.

Mille Net appears to have flouted the Companies Act by paying Ferreira R1m in dividends when, according to its financial statements, it was supposedly making losses in the first five months of the 2011/12 financial year.

Ferreira’s salary was increased to R150 000 a month in the 2010/11 financial year from R32 000 a month in the 2008/09 financial year.

No evidence could be found to show that Tsebe was paid R400 000 commensurate with her 40 percent shares.

In addition, The Star was not able to find proof of a shareholder resolution to increase Ferreira’s salary as required by the Companies Act. However, the statements reveal that the company had cash amounting to R5.7m.

This money, according to the company’s financial statements, could potentially increase to R12.7m if creditors repaid R4.8m and stock worth R2.2m was sold.

MFerreira and her lawyer, Alastair Smith, did not return repeated calls and text messages requesting their comment yesterday.

News of the company’s missing funds emerged as the process to liquidate Mille Net was reaching final stages before the office of the Master of the High Court in Pretoria.

Tsebe’s lawyer, Silas Senwamadi, said they had attended two creditors’ hearings between June and August this year.

Shandor Larenty, 17, quietly sits on the back of Mara, his three-month-old giraffe friend, at the Lion Park near Lanseria. Shandor has been raising Mara, who was abandoned by her parents, since soon after she was born. He is slowly teaching her to be...

HONEST: Elizabeth Tsebe, 44, who says she was used as a front by a medical supply company, Mille Net Imports, to win more than R160m worth of government tenders, prepares food at her home at the Aluta Park RDP settlement near Mokopane in Limpopo.

PICTURE: DUMISANI DUBE

EVIDENCE: These extracts of Mille Net’s financial statement show that Corrine Ferreira was paid R1m in dividends while another R2m disappeared from the company’s bank account.