21 May 2007
The National Prosecuting Authority's (NPA's), Directorate of Special
Operations or the Scorpions received information involving two international
traders (a Dutch and a Russian company) regarding theft of money by one of the
trade partners (Francois Malcolm Heyns) in South Africa. The Dutch legal
representative approached our office for assistance, while the Russian
complaint was channelled via the Economic Section of the South African Embassy
in Moscow.
In June 2004 a team was constituted and the investigation was authorised in
terms of section 28(1) of the NPA Act 32 of 1998. A search and seizure
operation was carried out on the premises of the suspect (later accused) on 17
November 2004. A number of items were seized during the raid. Following
analysis of the items seized, it emerged that some items included documents
that provided significant leads that identified persons who were to become
important witnesses for the state. In addition, other items were in the form of
documentary evidence.
Hereunder follows salient features of this investigation:
* The accused conducted business as a procurement agent for overseas buyers
of South African fruit produce. He used certain companies to conduct various
transactions in South Africa. These include Rothchilds Edward Morgan "REM"
(Pty) Ltd of which he was a Director and Freshrite (Pty) Ltd.
* In August 2003 the accused made a representation of a proposal to a
representative of Greenbox (a company registered in the Netherlands and trading
in fresh produce) to supply Greenbox with 50 000 cartons of Thompson seedless
grapes on consignment to be sourced from Upington District. Greenbox through
its representative accepted the proposal and made an advance payment to the
accused/REM/Freshrite of over R1,1 million. The advance was never used to
purchase fruit as per agreement but was expended on other unrelated items. This
was done without the consent of Greenbox. The company suffered a loss of about
R1,1 million.
* In May 2004 the accused entered into an agreement with a representative of
Sunway, a Russian company trading in fresh produce. In this instance the
accused undertook to procure 6 400 boxes (80 000 kg net weight) of pears from
South Africa to export them for the benefit of Sunway. REM required Sunway to
pay 70% of the purchase price in advance to secure the consignment. The advance
was duly made. As with Greenbox, the money was never used for the intended
purpose. At the end, Sunway suffered monetary loss of R235 000.
* Following the investigations carried out, the accused was subsequently
arrested and appeared at the Bellville Regional court in November 2006. A plea
and sentence agreement was entered into following consultation with all parties
concerned where the accused pleaded guilty to two counts of theft. In terms of
the agreement the accused was sentenced to R50 000 fine or 3 years imprisonment
where the fine is payable before or on 30 September 2007; monetary compensation
by the accused to the complainants; 3 years of correctional supervision and 7
years imprisonment suspended for five years with conditions. This case was
finalised on 14 May 2007 at the Bellville Regional Court.
* Despite its non-custodial nature, the sentence is very stringent as the
accused faces a possibility of a cumulative term of 13 years imprisonment,
should he fail to comply with the prescribed conditions.
As the NPA we hold that this case will send an unequivocal message that the
state institutions, especially law-enforcement agencies, will not play a
spectator role to criminals who want to ruin the South African image and
reputation by stealing and/or defrauding from unsuspecting international
traders. We will work towards ensuring that a suitable climate exists for the
people of this country and foreign investors to trade.
Enquiries
Tlali Tlali
NPA Deputy Spokesperson
Cell: 082 333 3880
E-mail: ttlali@npa.gov.za
Issued by: National Prosecuting Authority
21 May 2007
Source: National Prosecuting Authority (http://www.npa.gov.za/)
