The citizen has learned that a number of non-governmental organizations (NGOs), places of worship including mosques, religious organizations and individuals who have invested in Amaanat Investment Holdings (AIH) stand to lose millions of rands in returns and dividends.
This after a father and son allegedly stole R160 million from the investment firm through fraudulent and unauthorized payments.
Over the past few weeks, The citizen reported how the money was allegedly stolen by former CEO and board member Hussun Abdool Khalek (HAK) Omar, 68, and his 41-year-old son, Mahomed Hussun Omar, who was a company director at the time.
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A forensic report from Integrated Forensic Accounting Services revealed that a significant portion of the millions of rands was used by HAK Omar for his personal benefit and gain.
According to the forensic report, the case focused exclusively on allegations of improper and unauthorized payments classified as share issuance costs, a substantial amount of which was allegedly misappropriated by HAK Omar.
He also disclosed that expenses totaling R160 million had been debited from stated capital over a period of around 10 years.
Related payments were also made by Amaanat Investment Holdings to the Kreston or Kreston Agency account.
While the forensic report found that the accounting records kept by Kreston on behalf of AIH were inadequate and inappropriate, the circular to AIH board members and shareholders exposed the alleged corruption.
He said the loot was also paid into Mahomedy agency account, Omar Paruk and other related accounts controlled exclusively by HAK Omar.
Integrated Forensic Accounting Services also said AIH should consider filing a criminal complaint with the South African Police Service (Saps), requesting further police investigation into HAK Omar’s allegations of fraud and corruption.
It is unclear whether the father and son’s blatant fraud was reported to the police, but Mahomed Hussun Omar said The citizen he and his father met with their attorneys to discuss the allegations.
The lawyer for the father and son was unreachable after numerous attempts The citizen to contact them.
Following the resignation of HAK Omar and Mahomed Hussun Omar from the company, The citizen also reported that at least 10 other IAH directors are also expected to step down.
It is unclear what are the reasons for the massive resignations of directors, or if they are linked to the alleged theft of millions of rand by the father and son duo which caused repercussions in the investment market.
AIH has since sent a notice convening the special general meeting (AGE) of April 1 to the shareholders of the company with the main purpose of noting the resignations of certain directors who have expressed their intention to resign, with effect at the end of the ‘AG. , and to appoint 10 new directors.
A person familiar with the matter confirmed The citizenthe rotten underhand actions of Hussun Abdool Khalek Omar and Mohamed Omar is likely to have far-reaching consequences and implications for many Muslims and other organizations affecting their returns and the direct value of their investments in AIH.
He said AIH is worth around R4.5 billion, with millions being invested in the business.
“A value of what they’ve invested will be vastly depleted as a result of all the shenanigans out there, and that value could be affected and I’m talking now about all shareholder value could be affected by anything between 25 % and 50% (sic).”
The source said that mosques, NGOs and religious organizations have invested millions in IAI and stand to lose a substantial part of their investments.
This return on investment, he said, is used for mosque maintenance and staff salaries, among other expenses, while NGOs use the return on investment and dividends for humanitarian projects.
“They had invested more than five million. Millions that could be lost by NGOs and religious institutions from two points of view. Investors received a dividend of R26 per quarter two years ago, which gives you R104 per year. Currently, this is going to be reduced by sixty to seventy percent.
This is the first problem. So the institutions that had ideas about receiving that return to run their organizations, pay salaries, etc., they won’t have those funds to do anything.
“The second problem is that if they paid 1 million rand to invest in this business, a million is no longer worth a million, the question is, what is it worth?
“The appraisal has not been done to understand what the real value is, but there will most certainly be a reduction in this value up to 25% of this value, possibly more,” the source said.
With the current economic climate, rising interest rates and soaring gasoline prices, the severity of impacted organizations is expected to be catastrophic.
The source said that apart from NGOs, religious organizations and places of worship, many others have also been affected by the alleged theft of HAK and Mahomed Omar, who stigmatized investment companies.
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