Businessman in R100m graft probe

Johannesburg - A Gauteng businessman was under investigation for alleged fraud and money laundering that cost Old Mutual close to R100m, the Sunday Independent reported.

Matthews Tuwani Mulaudzi, group executive chair of Luvhomba, has not been formally charged yet, but was served with a court order informing him his assets had been attached by the Asset Forfeiture Unit (AFU).

The AFU said in court papers the fraud related to a R33m policy he took out with Fairbairn Capital, underwritten by Old Mutual.

AFU investigator Carel Lourens said in an affidavit that in March 2011 Mulaudzi ceded the policy to Nedbank for R37.6m.

In 2012 he tried to buy back the cession from Nedbank, but it refused.

In June this year, the policy matured and Mulaudzi contacted Old Mutual to ask that the full value of the investment, about R48m, be paid to him.

The money was paid into his bank account on 6 June.

Buy investments

Staff at Old Mutual did not realise Mulaudzi was not entitled to the funds at maturity. Old Mutual only realised this more than a month later, when Nedbank financial planning asked for the proceeds of the investment to be paid to it.

Lourens said Old Mutual was obliged to pay Nedbank the R48m and so ended up paying R96m for the same investment policy, according to the report.

Old Mutual asked Mulaudzi to repay the amount, but he refused.

AFU regional head Gcobani Bam said in a separate affidavit that Mulaudzi was also being investigated for money laundering after it emerged he had transferred the R48m to the MMI Group to buy investments, which he liquidated a week later.

He then allegedly transferred the proceeds back to his FNB account and, from there, to other accounts.