Pamodzi’s four-year legal battle over R50 million fraud finally heads to court

South African conglomerate Pamodzi Capital is finally set to get its day in court over a case of alleged fraud involving its former CFO and third parties, who allegedly defrauded the company of R50 million.

In a statement issued on Tuesday, the company confirmed that the matter has been set down for hearing at the Palm Ridge Commercial Crimes Court this Thursday and Friday. The hearing comes after what Pamodzi describes as “endless delays” that have plagued the case since 2021.

Pamodzi, originally founded in 1979, grew into one of South Africa’s most prominent black-owned private equity firms. However, it has not been without financial difficulties, which affected it around 2008 when its now-defunct gold subsidiary was placed under provisional liquidation due to chronic instability and its inability to pay workers.

Aurora Empowerment Systems – whose directors included individuals linked to political heavyweights such as former president Jacob Zuma – took over two of Pamodzi’s former operations, the Orkney and Grootvlei Mines. Trade union Solidarity subsequently accused Aurora of destroying the assets and leaving thousands of people without jobs. Pamodzi representatives later turned to the courts to compel the then-liquidated Aurora’s directors to pay for the mines.

Currently, the unlisted investment company holds interests in several well-known brands, Anglo Coal, ICT company Digicore, and Auto Bavaria Midrand, according to its website.

Regarding the embezzlement matter, Pamodzi said in its statement that “the resort to the courts of law has been characterised by nearly four years of frustrating misdirection, unexplained legal delays, and blocked progress”.

The company’s statement was issued the same week that President Cyril Ramaphosa suspended South Gauteng Director of Public Prosecutions, Advocate Andrew Chauke, with immediate effect. The suspension follows claims that threaten the credibility of the National Prosecuting Authority and Chauke’s alleged misconduct in office.

“Notwithstanding nearly five decades of a solid track record in the Gauteng business world, Pamodzi now finds itself having to approach the law courts to recover its embezzled resources and protect its reputation from being sullied by a man it had entrusted with growing and defending its brand,” the company stated.

Pamodzi, which means “togetherness” in an African context, describes its ethos as one of collective growth and shared success, achieved by combining the diverse abilities of its people.

Executive chairman Ndaba Ntsele said in the statement it was only through the dedication and tenacity of the company’s management team that the case was eventually enrolled at the Commercial Crimes Court.

“Had it not been for the persistence and exceptional efforts of Noluthando Ntsele from the Pamodzi legal team and Mothetjwa Sethunya, our Group Human Resources Director, this case would never have seen its day in court. Their steadfast commitment to upholding justice is truly admirable and exemplifies the high values of our organisation,” Ntsele said.

Pamodzi first opened the case in August 2021 at the Sandton Police Station. According to the company, the matter stalled due to a series of alleged fraudulent actions by law enforcement and prosecution authorities – at times in collusion with the unnamed accused – as well as substantial procedural delays.

IOL