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Court dismisses fraud case against Turkish brothers

Publish date: 09 July 2018
Issue Number: 781
Diary: IBA Legalbrief Africa
Category: Litigation

A judgment has rebuked complainants from a coal company who levelled ‘unsubstantiated’ fraud claims worth millions of rands against their business partners in a bitter family feud. The Star reports Huseyin Caliskan and Muhammed Caliskan made damning allegations of an elaborate embezzlement scheme that their business partners, Turkish nationals Abubekir Salim and Mehmet Selim Kaymak, had siphoned off millions from their company, Sumo Coal, to a Mauritius Commercial Bank account. In April, the Caliskan brothers won a draft order from the Gauteng High Court (Pretoria) that Salim and Kaymak should repatriate the money into the FNB account of Londani Coal, a subsidiary of Sumo Coal. At issue was the sale and transfer of the 100% shareholding that Sumo Coal had in Root Mining, which owned 74% of Londani Coal. However, Judge HJ Fabricius slammed the Caliskan brothers last week for waiting three years before challenging the sale of the shares. The judge said the brothers had launched court action only after Root Mining and Londani Coal had become profitable, adding that this had to ‘be seen in the light that the applicant (Sumo Coal) is now experiencing extreme financial difficulty’. Fabricius said the Caliskan’s embezzlement and fraud allegations ‘were unsubstantiated, devoid of any factual basis, evidence or documentary proof’, and ordered the brothers to pay the costs of the application, including all legal fees.

Full report in The Star