SOUTH AFRICA: ANOTHER CORPORATE SCANDAL: FRAUD AND ACCOUNTING FAILURES AT DELTA PROPERTY FUND

On 10 December, the Daily Maverick reported that the board of Delta Property Fund – which owns a range of office properties that are largely occupied by government departments and entities – has seemingly taken a page out of Steinhoff’s playbook in informing shareholders about a forensic investigation that points to accounting failures and fraud at the real estate company.  The board appointed Mazars Forensic Services to conduct a forensic investigation into alleged procurement irregularities and misappropriation of funds at the company by senior executives.  However, it told shareholders that the Mazar forensic report will not be released as it is “confidential and subject to legal privilege” – a line used by Steinhoff after PwC, in a 7,000-page report, revealed a web of fraud at the retailer.  The article says that the “legal privilege” excuse has been used by others: Sasol when it commissioned a review of delays and cost overruns at its US-based Lake Charles chemical project and EOH, which suffered years of corruption.

https://www.dailymaverick.co.za/article/2020-12-10-another-sa-corporate-scandal-fraud-and-accounting-failures-at-delta-property-fund

I had omitted the following link (as it did not seem to generate much interest!), but it seemed time to add it again and say that, if you would like to make a (polite) gesture and help me with my removal and computer costs, I have a page at https://www.buymeacoffee.com/KoIvM842y

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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