Six directors of the Gauteng-based firm NJM Treatment and NDE Services (NJM) have appeared at Palm Ridge magistrate’s court on Thursday facing charges of fraud.
Mark Douglas Smith, Alexander Elias Roditis, Vanessa Chungu, Raymond Crozier, Guy Phillip le Roux and Ronald James Hoy were arrested on Monday and hauled straight to court for bail applications.
Companies that are also accused of committing fraud are NJM, Dasmar Engineering and Thermo Jet.
All six granted bail of R20,000 each
All six accused were granted bail of R20,000 each, and their case was postponed to November 29.
Sunday World broke the story of NJM in July last year, when a businesswoman named Baleseng Zinyana claimed acts of fraud at the company.
Zinyana lodged a formal complaint with the Independent Regulatory Board for Auditors (IRBA) in 2021. She lodged it against the auditors of her company, NJM, for suspicious fraudulent activities.
In the complaint, Zinyana said she acquired 26% of the engineering company’s shares. These she paid for in cash in 2014.
She said after the reviewed financial statement for the year ended February 28 2019 was presented, the board resolved in November 2019 to appoint an audit firm to perform an audit for the 2018-2019 year as well as the years to follow.
Hawks spokesperson, Colonel Katlego Mogale confirmed the matter.
“These arrests stem from extensive investigations into fraudulent activities. They involve NJM Treatment and NDE Services and other entities. The accused face charges of fraud, theft, and money laundering.
“Investigations revealed a series of issues. The directors of NJM Heat Treatment and NDE Services misrepresented themselves to Eskom. …They did so by submitting fraudulent tenders for supply of goods. And they falsely claimed to have a valid shareholders’ agreement and engaged in fronting practices. Thus violating the B-BBEE Act,” said Mogale.
Entered plea of not guilty
In court, the lawyer of the NJM directors, Ian Small-Smith, read their affidavits to magistrate Phillip Venter. In it they all pleaded not guilty on charges they faced.
The court heard that in October 2017, the directors knowingly submitted falsified financial records to Eskom. This was to secure a tender, leading to fraudulent activities.
“The South Gauteng High Court heard the case, where suspects admitted to presenting false information to Eskom. Similar fraudulent activities were identified in their dealings with Sasol, resulting in the termination of NJM’s services. The potential loss to both entities is estimated at over R400-million,” said Mogale.
Barred from leaving the country
Venter told the accused that they should not leave the country without informing the investigating officer. And they should give compelling reasons to the police if they had to travel abroad.
The National Head of the Hawks, Lieutenant General Godfrey Lebeya, has welcomed the arrests.
“We urge all businesses to desist from corrupt actions and maintain transparency and integrity in their operations. Corruption has severe legal consequences, be it in the private or public sector. And it undermines trust and credibility. Upholding ethical standards is crucial for a fair and just society,” said Lebeya.
