Businessman defrauds Old Mutual of R48m

Johannesburg - The National Prosecuting Authority (NPA) has obtained a freezing order of R48m against a businessman who defrauded Old Mutual, taking total assets seized over the past five months to R2.5bn

NPA spokesperson Nathi Mncube said on Wednesday this amount was more than the total amount it had frozen in the past four years.

"The latest success was in the Western Cape, where [the] NPA obtained a large freezing order of R48m against businessman Mr Matthews Tuwani Mulaudzi, who had defrauded Old Mutual of this amount," said Mncube.

READ: Businessman in R100m graft probe

The NPA froze Mulaudzi's assets, which included investments, four immovable properties in Pretoria and a vehicle.

Mulaudzi was accused of misleading Fairbairn Capital, an investment entity underwritten by Old Mutual, by falsely claiming a R48m investment, although he had already ceded the proceeds to Nedbank.

"Old Mutual was alerted by Nedbank about the cession when the latter also claimed the proceeds of the investment after the date of its maturity in terms of the cession it had from Mr Mulaudzi," said Mncube.

Mulaudzi had also received credit of R37m from Nedbank by ceding the Old Mutual investment as security.

Investigations showed that he hid the money he received by transferring it between his 10 bank accounts at various banks and by putting it into investment plans.