A doctor accused of defrauding First National Bank and Sasol of R420m through a cross-border petroleum syndicate is seeking bail in a separate R7m fraud case, in which he allegedly duped a businessman into paying millions for fuel that did not exist.
Mahendren Munsamy’s alleged scam is so intricate, reports the Mail & Guardian, that Sasol and FNB are now involved in litigation over the missing millions, after FNB gave a company linked to the doctor “fraudulent guarantees” worth R420m for the purchase of “large volumes” of fuel from Sasol – which apparently did not receive payment for the sale.
The guarantees were supposedly issued by former FNB employee Pragasen Reddy from January to May 2011 after Munsamy apparently bribed Reddy with about R2m, channelled through an account opened in Reddy’s mother’s name.
The alleged R420m theft is reported in an affidavit filed by Malini Mudaly from FNB’s premium division, forming part of a Gauteng High Court (Johannesburg) fraud, racketeering and money laundering case, among other charges, against Munsamy and others.
According to the state, luxury properties in several affluent Johannesburg suburbs were bought by Munsamy and his family from the proceeds of the apparent theft, allegedly laundered back into South Africa from Mozambican fuel sales through Mauritius.
Court filings show Munsamy is a director of Mauritius-based GTL Direct, and takes in the proceeds of the fuel sales.
In 2011, Munsamy’s company, Lavela (now in liquidation), received R310m in FNB guarantees to buy fuel from Sasol, meant to be supplied to “another entity controlled by Dr Munsamy” called Gas 2 Liquids, reads Mudaly’s statement.
Gas 2 Liquids sold fuel to chemicals giant Chevron, which could not pay an amount owed to its supplier in June 2011, whereafter Gas 2 Liquid decided to off-set its debt by buying fuel from Chevron and “exporting” it to Mozambique.
“Through this transaction, Dr Munsamy diverted a large payment that should have gone to Sasol. The volume of fuel shipped to Mozambique was 17.5m litres and the (value involved) some R190m,” reads the affidavit.
A further R110m in “fraudulent guarantees” was given by FNB in April 2011 to a company called Imvuselelo Petroleum and Gas, which also supplied Gas 2 Liquids, bringing the total to R420m.
“Sasol then claimed from the bank on the strength of the guarantees and the bank resists payment on the basis that the guarantees are fraudulent,” Mudaly stated.
In January, in the Johannesburg Specialised Commercial Crimes Court, Munsamy testified for three days during the bail application for the 35 counts of fraud, theft, money laundering, possession or use of proceeds of unlawful activities, and assisting another to benefit from proceeds of unlawful activities.
Arrested in January last year, he is still in custody charged with swindling businessman Ravesh Moodley out of R7m from November 2017 to September 2018. Moodley had invested the money in a bogus petroleum venture to buy 700 000 litres of fuel.
In this matter, Munsamy is charged with four of his employees and associates – Elliot Mashapa, Trevornin Thambi, Tanya Wiener and Zunaid Moosajee Patel – all of whom are out on bail.
The National Prosecuting Authority charge sheet shows Munsamy persuaded Moodley to invest R4.5m in an entity called Xanado, of which he is a director, to buy 700 000 litres of fuel that did not exist.
“Moodley was also asked to pay R509 000 (into Xanado’s) bank account, to apparently serve as ‘working capital’. “The R509 000 was appropriated by Munsamy and others nominated by him,” the charge sheet reads.
Moodley believed he would reap a monthly income of R150 000 from the investment. Between March and August 2018, he invested another R2m into Xanado “for clearance fees” for the fuel, among other alleged misrepresentations.
“Moodley (and his company) Two Line Trading suffered … financial losses as a result of the misrepresentations made to him by (all five accused) and/or other persons who acted in concert with the said accused persons.”
But Munsamy dismissed Moodley’s allegations during the bail testimony, accusing Moodley of beating him up in March 2021, damaging his eye and breaking his ribs.
“He (Moodley) was upset it was taking too long to pay him,” Munsamy testified, adding he had opened a case of assault against Moodley.
On the fraud case involving FNB and Sasol, Munsamy rejected those charges as well, saying the state had a “non-existent and weak case”.
His views were disputed in Mudaly’s affidavit, which detailed how Munsamy used another of his entities – the SA Petroleum and Energy Guild – to launder profits from his fuel sales in Mozambique to Mauritius, then back into SA.
FNB employee Reddy, who apparently authorised the R420m guarantees, “conceded” that he forged the signature of Pule Mahlangu, his colleague.
Mail & Guardian article – Doctor accused of defrauding FNB and Sasol of R420m (Restricted access)
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