AFRICAN Equity Empowerment Investments (AEEI), the diversified majority black-owned investment group, with plans to delist on the JSE, clarified yesterday that an incident of what it had thought was cybercrime was fraud after a South African Police Service’s investigation.
AEEI explained in a Stock Exchange News Statement (SENS) what had occurred: “Shareholders are referred to the SENS released on 19 February 2024, regarding an incident involving our subsidiary, Premier Fishing.
“It has been noted that the title and first paragraph of the SENS incorrectly mentioned cybercrime instead of fraud, which accurately defines the incident.
“Ongoing investigations have uncovered that the incident was fraud and not cybercrime as previously reported in the Annual Financial Statements for 31 August 2023, released on SENS on 13 December 2023, and are hereby provided with an update to an incident involving one of AEEI’s subsidiaries as referred to in the paragraph titled ‘Events after the reporting date’,” it said.
On or about November 15, 2023, Premier Fishing and Brands, a 56.23% owned subsidiary of AEEI, was the subject of a fraud that resulted in the transfer of $820 000 (R15.43 million) from its bank account to an unknown third party.
In response, Premier Fishing opened a criminal case with the SAPS and initiated internal investigations.
“Additionally, and following a thorough investigation and disciplinary proceedings, the CEO of Premier Fishing, Sooren Ramdenee, was found guilty of negligence, and appropriate action has been taken in this regard,” it explained.
AEEI further said that efforts to recover the misappropriated funds were ongoing and the board of directors of AEEI was committed to exploring all available avenues for their recovery.
BUSINESS REPORT