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IOL News
5 days ago
- Business
- IOL News
Plett businessman forfeits R13million to the state
The sentencing was handed down in the Bellville Specialised Commercial Crimes Court. Image: File A Dutch national with permanent residency in the country has been convicted and sentenced for fraud in the Bellville Commercial Crimes Court. Martin Lennard Korver, 59, from Plettenberg Bay, was convicted of fraud in the amount of R6.8 million and theft in the amount of R4 million. The total amount of loss was R10.9 million. He entered into a plea and sentencing agreement with the State, where he confessed to his crimes. The complainants in his case were Gustav Schaefer and Jan Eberhard Schliemann, directors of Cobow (Pty) Ltd and Korevest Investments Group (Pty) Ltd, based in Somerset West. Korevest Investments Group (Pty) Ltd is a 100% shareholder in Cobow (Pty) Ltd, and the latter conducts the business of a guesthouse in Somerset West. The court heard Korver was a director of the two companies until his resignation on August 16, 2016. He and the complainants were in control of both companies' financial and banking affairs. Korver was also the sole director of Korevest Leisure Group B.V., based in the Netherlands. Korevest Leisure is a 47% shareholder in Korevest Investments Group (Pty) Ltd, while the Schliemann Family trust holds 28% and the Finserf Foundation 25%. In November 2013, Korver opened bank accounts with Investec South Africa on behalf of the two companies. The bank accounts were linked to his personal bank account without the knowledge and/or consent of the complainants, as this was done before their involvement. During May and June 2015, he opened a call deposit account and a loan account on behalf of Korevest Investments Group (Pty) Ltd with the Investec Bank of Mauritius. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading He claimed the complainants were aware of the call deposit account. He entered into a loan agreement on behalf of Korevest Investments Group (Pty) Ltd with the Investec Bank of Mauritius and secured €442 602.94, which equates to R6.8million between the two companies and the bank. Korver used an immovable property (guest house in Somerset West) as collateral to secure the loan from Investec Bank of Mauritius. Arguing in aggravation of sentence, Senior State Advocate Denzyl Combrink said the accused was in a position of trust which he abused to his financial benefit. Korevest Investments Group (Pty) Ltd incurred excessive expenses relating to loans and legal fees due to its illegal actions. These include R1.5 million, the company had to pay to Investec Bank of Mauritius to settle the loan the accused took out and failed to repay. The company also paid R3 million in legal expenses, due to the various civil litigations between the parties. One of the complainants had to lend Korevest Investments Group (Pty) Ltd R1.5m to ensure that the business stayed afloat. Korevest Investments Group (Pty) Ltd incurred a deficit relating to its tax liabilities with the South African Revenue Services (Sars). The court sentenced Korver to 10 years direct imprisonment for each count of which both were wholly suspended for five years on condition he is not convicted of fraud, theft, and/or any offence of which dishonesty is an element during the period of suspension. The court further made a confiscation order in the amount of R13.4million following the Asset Forfeiture Unit's investigation of his assets. Korver was also sentenced to 36 months of correctional supervision, which includes house arrest for 24 hours per day. He will be allowed to leave home between 7am and 7pm on weekdays for work. The court sentenced him to community service for 16 hours per month for the duration of his sentence. It ordered him to attend rehabilitation programmes (including a stop crime or similar programme) as determined at re-assessment by the social worker at the community correction office, to substantiate the goals of correctional supervision. The Commissioner of the Department of Correctional Services in George will determine the reasonable content and length, times, and places of such programmes. The department will recover the costs of the programmes from the accused. The court also allowed for Korver to attend a spiritual growth service, including at a church or mosque, or have free time on Saturdays from 12pm until 4pm, and Sundays from 8am until 12pm. Korver is not allowed to leave the magisterial district of his residence or work without the permission of his Correctional Supervision Officer and is prohibited from using alcohol or drugs other than those prescribed by a medical practitioner. He must obtain written permission before he changes his residential or work address. The court further ordered that as part of Korver's sentence he will ensure that the 47% shareholding held by Korevest Leisure Group BV in Korevest Investments Group (Pty) Ltd is transferred to the Finserf Foundation, upon presentation to him of the necessary documents by the complainants. He also accedes to the confiscation order in the amount of R1.2 million, which will be paid as a lump sum within five court days of the agreement being made an order of the court. The money will be transferred from the accused' attorney's trust bank account to the complainant's nominated bank account. Provincial NPA spokesperson Eric Ntabazalila welcomed the sentence. Cape Times
IOL News
6 days ago
- Business
- IOL News
Dutch national who defrauded companies sentenced to house arrest and community service
The sentencing was handed down in the Bellville Specialised Commercial Crimes Court. Image: File A Dutch national with permanent residency in South Africa has been convicted and sentenced for fraud in the Bellville Commercial Crimes Court. Martin Lennard Korver, 59, from Plettenberg Bay in the Western Cape, was convicted of fraud in the amount of R6.8 million and theft in the amount of R4 million. The total amount of loss was R10.9 million. He entered into a plea and sentencing agreement with the State, where he confessed to his crimes. Complainants in his case are Gustav Schaefer and Jan Eberhard Schliemann, directors of Cobow (Pty) Ltd and Korevest Investments Group (Pty) Ltd, based in Somerset West, Western Cape. Korevest Investments Group (Pty) Ltd is a 100% shareholder in Cobow (Pty) Ltd, and the latter conducts the business of a guesthouse in Somerset West. The court heard Korver was a director of the two companies until his resignation on August 16, 2016. He and the complainants were in control of both companies' financial and banking affairs. Korver was also the sole director of Korevest Leisure Group B.V., based in the Netherlands. Korevest Leisure is a 47% shareholder in Korevest Investments Group (Pty) Ltd, whilst the Schliemann Family trust holds 28% and the Finserf Foundation holds a 25% shareholding in Korevest Investments Group (Pty) Ltd. In November 2013, Korver opened bank accounts with Investec South Africa on behalf of the two companies. The bank accounts were linked to his personal bank account without the knowledge and/or consent of the complainants, as this was done before their involvement. During May and June 2015, he opened a call deposit account and a loan account on behalf of Korevest Investments Group (Pty) Ltd with the Investec Bank of Mauritius. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading He claimed the complainants were aware of the call deposit account. He entered into a loan agreement on behalf of Korevest Investments Group (Pty) Ltd with the Investec Bank of Mauritius and secured €442 602.94, which equates to R6.8million between the two companies and the bank. Korver used an immovable property (guest house in Somerset West) as collateral to secure the loan from Investec Bank of Mauritius. Arguing in aggravation of sentence, Senior State Advocate Denzyl Combrink said the accused was in a position of trust which he abused to his financial benefit. He committed the offences to gain an unfair and unjustified financial advantage. Korevest Investments Group (Pty) Ltd incurred excessive expenses relating to loans and legal fees due to its illegal actions. These include R1.5 million, the company had to pay to Investec Bank of Mauritius to settle the loan the accused took out and failed to repay. The company also paid R3 million in legal expenses, due to the various civil litigations between the parties. One of the complainants had to lend Korevest Investments Group (Pty) Ltd R1.5m to ensure that the business stayed afloat. Korevest Investments Group (Pty) Ltd incurred a deficit relating to its tax liabilities with the South African Revenue Services (Sars). The court sentenced Korver to 10 years direct imprisonment for each count of which both were wholly suspended for five years on condition he is not convicted of fraud, theft, and/or any offence of which dishonesty is an element during the period of suspension. The court further made a confiscation order in the amount of R13.4million following the Asset Forfeiture Unit's investigation of his assets. Korver was also sentenced to 36 months of correctional supervision, which includes house arrest for 24 hours per day. He will be allowed to leave home between 7am am and 7pm on weekdays for work. The court sentenced him to community service for 16 hours per month for the duration of his sentence. It ordered him to attend rehabilitation programmes (including a stop crime or similar programme) as determined at re-assessment by the social worker at the community correction office, to substantiate the goals of correctional supervision. The Commissioner of the Department of Correctional Services in George will determine the reasonable content and length, times, and places of such programmes. The department will recover the costs of the programmes from the accused. The court also allowed for Korver to attend a spiritual growth service, including at a church or mosque. Or have free time on Saturdays from 12pm until 4pm, and Sundays from 8am until 12pm. Korver is not allowed to leave the magisterial district of his residence or work without the permission of his Correctional Supervision Officer and is prohibited from using alcohol or drugs other than those prescribed by a medical practitioner. He must obtain written permission before he changes his residential or work address and not commit any further offence(s). The court further ordered that part of Korver's sentence is that he will ensure that the 47% shareholding held by Korevest Leisure Group BV in Korevest Investments Group (Pty) Ltd is transferred to the Finserf Foundation, upon presentation to him of the necessary documents by the complainants. He also accedes to the confiscation order in the amount of R1.2 million, which will be paid as a lump sum within five court days of this agreement being made an order of the court. The money will be transferred from the accused' attorney's trust bank account to the complainant's nominated bank account. The Western Cape spokesperson for the National Prosecuting Authority (NPA), Eric Ntabazalila said it welcomed the sentence as a strong affirmation of the uinwavering commitment to prosecuting corruption and fraud. 'These crimes not only erode public trust but also undermine economic growth and discourage local investment. This outcome demonstrates the NPA's dedication to protecting the integrity of South Africa's economy and promoting a fair, accountable business environment,' Ntabazalila said. IOL
IOL News
23-06-2025
- IOL News
Two suspects released on bail after R6. 8 million drug bust in Cape Town
Two suspects have been released on bail following a significant drug bust in Cape Town, where authorities seized drugs worth over R6.8 million. Two suspects implicated in an inter-provincial drug bust have been released on R15 000 bail each and will return to court on July 7. Hawks spokesperson, Siyabulela Vukubi, said the Hawks' Asset Forfeiture Investigation in collaboration with the National Prosecuting Authority's Asset Forfeiture Unit obtained a preservation on Monday by the Western Cape High Court. This was after members of the Hawks' South African Narcotics Enforcement Bureau acted on intelligence received on August 23, regarding a Hyundai H1 that was transporting drugs from Gauteng to Cape Town. The vehicle was spotted on the N2 near Strand towards Cape Town.
The Citizen
23-06-2025
- Business
- The Citizen
Generational wealth: Dis-Chem founder gifts sons nearly R7 billion in shares
The shares are equivalent to about a 25% stake in Dis-Chem. Dis-Chem founder Ivan Saltzman has taken gifting to a new level as he prepares the next generation of the family to become significant shareholders in the pharmacy group. Accelerating his succession plan, he has handed over 217 shares in the pharmacy to his two sons, Dan and Mark Saltzman. By the end of trading on 19 June, the shares were worth R6.8 billion. The 217 shares gifted to the sons were previously held by Ivlyn Local Investment Holdings (Ivlyn), also founded by Ivan and his wife, Lynette Saltzman. The shares are equivalent to approximately a 25% stake in Dis-Chem. New era for Dis-Chem The news was announced on Friday by the group, which is worth R27 billion. 'Ivan Saltzman is in the process of restructuring his interest in the Dis-Chem share portfolio, which is held through Ivlyn Local Investment Holdings Proprietary Limited. 'This restructuring involves the distribution 217 125 386 ordinary shares. All distributed shares will remain within the Saltzman family, thereby continuing current family ownership,' read the announcement. Ivlyn, before the transaction, held 29.31% of Dis-Chem, and it now holds 4.06%. While Dan and Mark each hold 12.62% of the group. NOW READ: 'No whites' letter cost Dis-Chem hundreds of millions in profit Third son already at Dis-Chem Before the transaction, neither of the two sons held an executive position or a board seat. However, this is expected to change as they become more involved in the group's operation. Another son of the Saltzman family, Saul, has held various positions within the group throughout his entire career and was appointed executive director alongside his father in 2022. Saul already has shares in the group. Dis-Chem was founded in 1978 and listed on the Johannesburg Stock Exchange (JSE) in 2016. 'The transaction will not affect the liquidity of the company's shares traded on the JSE.' Who owns the company? Ivan stepped down as CEO in 2023 after 45 years, succeeded by Rui Morais, who had previously served as the company's CFO. In 2021, the Saltzmans reduced their shareholding in the group from above 50% to 31% through several transactions. 7% was sold to the open market for almost R2 billion to interested investors, and a 3.75% stake was also sold to senior executives, including Morais. In the previous financial year, Ivan received total remuneration of R17 million, while his wife was paid R14 million. Despite Ivan's stepping down in 2023, he and Lynette remain actively involved in the company's operations. Saul was paid a total of R7.9 million. NOW READ: Dis-Chem's growth strategy challenges Clicks' dominance
The Citizen
16-05-2025
- Business
- The Citizen
Matjhabeng municipality's appeal rejected amid financial challenges, service delivery collapse
The municipality's appeal application has no reasonable prospect of success, according to Judge Van Rhyn. Free State's Matjhabeng Local Municipality in the Free State has suffered a legal setback after its appeal was dismissed. The appeal stemmed from a case filed by the Democratic Alliance (DA) against the municipality, which was brought before the Free State High Court in Bloemfontein. The DA argued that Matjhabeng was in a financial crisis and persistently failing to meet its obligations to provide basic municipal services and fulfil its financial commitments. In November 2023, the party requested the intervention of the Free State government and the Minister of Cooperative Governance and Traditional Affairs (Cogta). The Matjhabeng Local Municipality consists of the towns of Welkom, Virginia, Odendaalsrus, Hennenman, Ventersburg, and Allanridge. Matjhabeng municipality audit findings The case was largely informed by the Auditor-General's findings, which highlighted a range of serious issues within the municipality. The audit revealed that Matjhabeng lacked proper systems to accurately bill residents for water and electricity usage. It also showed that the municipality's water infrastructure was severely deteriorated, resulting in a loss of 56% of the water it procures due to infrastructure failure. These losses—exceeding R239 million—were a result of metering inefficiencies, ageing pipelines, burst pipes, leakages, and unmetered connections. The municipality was also found to owe Eskom R6.8 billion. ALSO READ: Eskom to disconnect 15 Free State towns over billions worth of debt Material electricity losses totalling more than R98 million were attributed to the condition of the electricity network, adverse weather, load pressures, and non-technical losses such as theft and vandalism. Moreover, the audit disclosed that more than R339 million in fruitless and wasteful expenditure had been incurred, primarily from interest and penalties on overdue supplier payments. The municipality was also found to have failed to meet the 30-day payment requirement stipulated by the Municipal Finance Management Act (MFMA). In October 2024, the Free State High Court ruled in favour of the DA and issued a declaratory order. The respondents in the case included the municipality itself, the President, the Cogta Minister, the National Treasury, the National Council of Provinces (NCOP), and the Free State Premier. Leave to appeal application In its appeal, heard in March 2025, the Matjhabeng Local Municipality argued that the court erred in finding it had violated the constitution by failing to provide essential services. The municipality claimed that the current administration, which took office in November 2021, had inherited long-standing challenges. These included decaying infrastructure, poor service delivery, limited funding, and significant debts to service providers. According to the municipality, these problems had developed over time and were now the responsibility of the new leadership to resolve. READ MORE: Water wasted in Free State totals R3.7 billion in last seven years However, in her ruling, Judge Ilse van Rhyn pointed out that the municipality had not challenged any of the substantive facts or legal grounds presented by the DA in its original application. 'The Matjhabeng Municipality did not dispute the DA's case that there has been a breakdown in law and order, including rampant infrastructure theft, vandalism and illegal mining activities within the area of the Matjhabeng Municipality. 'The Matjhabeng Municipality has incurred staggering amounts of wasted and irregular expenses, including the outsourcing of its project management unit and furthermore paying for duplicated services and inflated invoices,' the judgment reads. Court dismisses Matjhabeng Municipality's appeal Van Rhyn emphasised that the facts presented by the DA about Matjhabeng Local Municipality's failure to meet constitutional obligations were not in dispute. 'While the DA contended that the only solution was to grant the substantive relief sought, by granting of a structural interdict and the imposition of intervention measures to the effect that the provincial spheres of government will intervene and impose a recovery plan, the opposing respondents, including the Matjhabeng [Local] Municipality argued that within a short period of time, much progress has indeed been made and that a further 12 months will afford them time to see the recovery steps to fruition.' She concluded the municipality's appeal application had no reasonable prospects of success and should be dismissed. The Matjhabeng Local Municipality was placed under administration by the Free State government in February. NOW READ: Free State government's buildings left in the dark due to their electricity debt
