FSB asked to explain latest Fidentia allegations

Rudi Bam alleges financial statements were no longer being approved by shareholders and signed by independent auditors in 2003. He says one of the directors of the FSB was acting as an auditor. He claims he notified the FSB and police, but nothing was done, according to SABC News. The African Christian Democratic Party (ACDP), who invited Bam to Parliament, says they contacted the FSB to verify these allegations. The party says the FSB told her that it had been tipped off about what was happening at Fidentia. Full SABC News report

The FSB says it received the information from Bam with caution. FSB spokesperson Russel Michaels, who said the FSB met Bam in March 2006, said this was because Bam was in litigation with Fidentia. Bam was suing Fidentia over the value of the share certificates due to him. But he lost his court bid. Michaels said the FSB’s inspection started in mid-year 2006 and Fidentia was placed under curatorship earlier this year. J Arthur Brown and former financial director Graham Maddock were arrested and released on R1m bail each, says the Cape Argus. They are expected to appear in the Cape Town Magistrates’ Court on August 31. Brown and Maddock face fraud and theft charges involving over R200m from the Transport Sector Education and Training Authority. Other charges could follow. Fidentia was placed under curatorship in February after a FSB investigation found that R630m of the almost R2b received from investors by Fidentia Asset Management was unaccounted for. Much of the missing money belonged to the pension funds of widows and orphans of mineworkers. Full Cape Argus report