Gunship
5th Nov 2002, 08:19
News 24 .. what else .. (http://www.news24.com/News24/South_Africa/0,1113,2-7_1280425,00.html)
Philip de Bruin
Johannesburg - A massive fraud scheme, which saw aircraft engines of the Malawi Air Force "openly" being carried away from the South African servicing company and which may involve officials of the Civil Aviation Authority, was uncovered recently.
The police commercial crimes unit is investigating the case that involves about R40m. Two of the turbine engines for Dornier 228 jets from Malawi are in the garage of a private home in Houghton "where they are being irreparably damaged".
Apart from the engines, "several aircraft parts and even a complete aircraft that is in America", are also being investigated. A police spokesperson confirmed the investigation on Monday. A liquidation application, handed in to the High Court, also refers to the alleged fraud scheme.
The Malawi government, several businessmen and Absa bank are some of the plaintiffs in the case.
The man allegedly behind the scheme is a 42-year-old American citizen who has a work permit to stay in South Africa.
Engines worth R10m each
He lives in Houghton and acted as an "agent" for the Malawi Air Force to arrange the servicing of their aircraft engines.
The man, who is out of South Africa at the moment, allegedly "openly drove away with the engines, with or without the help of someone at ExecuJet", where the engines were serviced.
The engines were allegedly fraudulently registered in the American's name, "possibly with the assistance of Civil Aviation Authority officials".
Once the engines were registered, he borrowed millions of rands from banks, using the false ownership documents of the engines as collateral.
A single engine is worth about $1m (about R10m).
Absa was one of the banks that loaned the American money on the strength of the proof of ownership. The possibility that the man also borrowed money from other banks is being investigated.
May issue warrant for man's arrest
Three South African businessmen - all of them well known in business circles, but who may not be named until arrests have been made - have joined Absa and the Malawi government in filing charges with the police. More complaints may follow.
While the American allegedly used false ownership documents to borrow money left, right and centre, he "stored" the engines at a friend's house in Houghton.
The specific engines are extremely sensitive, but are lying "exposed" in boxes in a garage.
The national prosecuting authority is studying the affidavits and may issue a warrant for the American's arrest
Philip de Bruin
Johannesburg - A massive fraud scheme, which saw aircraft engines of the Malawi Air Force "openly" being carried away from the South African servicing company and which may involve officials of the Civil Aviation Authority, was uncovered recently.
The police commercial crimes unit is investigating the case that involves about R40m. Two of the turbine engines for Dornier 228 jets from Malawi are in the garage of a private home in Houghton "where they are being irreparably damaged".
Apart from the engines, "several aircraft parts and even a complete aircraft that is in America", are also being investigated. A police spokesperson confirmed the investigation on Monday. A liquidation application, handed in to the High Court, also refers to the alleged fraud scheme.
The Malawi government, several businessmen and Absa bank are some of the plaintiffs in the case.
The man allegedly behind the scheme is a 42-year-old American citizen who has a work permit to stay in South Africa.
Engines worth R10m each
He lives in Houghton and acted as an "agent" for the Malawi Air Force to arrange the servicing of their aircraft engines.
The man, who is out of South Africa at the moment, allegedly "openly drove away with the engines, with or without the help of someone at ExecuJet", where the engines were serviced.
The engines were allegedly fraudulently registered in the American's name, "possibly with the assistance of Civil Aviation Authority officials".
Once the engines were registered, he borrowed millions of rands from banks, using the false ownership documents of the engines as collateral.
A single engine is worth about $1m (about R10m).
Absa was one of the banks that loaned the American money on the strength of the proof of ownership. The possibility that the man also borrowed money from other banks is being investigated.
May issue warrant for man's arrest
Three South African businessmen - all of them well known in business circles, but who may not be named until arrests have been made - have joined Absa and the Malawi government in filing charges with the police. More complaints may follow.
While the American allegedly used false ownership documents to borrow money left, right and centre, he "stored" the engines at a friend's house in Houghton.
The specific engines are extremely sensitive, but are lying "exposed" in boxes in a garage.
The national prosecuting authority is studying the affidavits and may issue a warrant for the American's arrest