1st report - 2011

Highlights
· The arrest of a KZN security provider for the illegal possession of weapons destined for Somalia. This was an intelligence based investigation with information provided by IRS.
· The arrest of a man in NW who allegedly had access to bio / nuclear WMD.
· The investigation into a fraudster in NW which was initially a 750k fraud but after our investigation was reported in the popular Beeld newspaper last week on 10 February 2011, many more victims have come forward and the actual amount defrauded is now in the tens of millions of rands. (Beeld article attached herewith.)
· We successfully closed a theft of a 5 ton truck matter within 2 days of receiving the instruction in early January 2011.
· We recovered a Jeep Cherokee 5.7l V8 Hemi after receiving an instruction in January 2011. The vehicle had been stolen a year before in January 2010 and no-one, including SAPS, could find the vehicle as the tracking device had been disabled. We found the vehicle in Majaneng within a week of receiving the instruction.
New investigations in 2011 include –
· The fraudulent purchase of a 55 million rand development in KZN Drakensberg using fabricated bank guarantees.
· The fabrication of council documents in the Ekhuruleni area by an unscrupulous developer leading to investors being swindled out of 15 million rands.
· The investigation into collusion by a well known casino and resort’s procurement management and construction contractors leading to invoices being inflated by up to 100% for World Cup renovations during 2010.
· The suspect deal between an aviation company and a medical transport supplier where 8 million rand was “lost”.
· The suspected theft of 4.5 million rand in another suspect aviation deal involving a previous suspect linked to the MKB matter.
· The investigation into alleged fraud involving Colliers and a KZN North Coast development.
· We have been instructed to investigate several theft under false pretences matters where service providers provided services for their clients who received payment from 3rd parties but never paid across proceeds to the service provider. One matter involves 2010 WC signage; another involves a publication in part sponsored by Pick ‘n Pay.
· Several new investigations involve advance fee scams. In one new matter a person paid across 400k to someone purporting to be able to get repossessed vehicles from ABSA prior to the vehicles being auctioned. The 400k was paid in advance and no vehicles were forthcoming.
· The investigation into a supposed bond origination company also taking advance fees to raise bonds for clients with the bonds not being realised and the advance fees not being refunded.
· Another advance fee matter that we are investigating is into a syndicate that take funds as “release fees” for international loans etc. The syndicate also fabricates letter of credit.
· The investigation into a well known Johannesburg businessman who has been laundering funds from illicit activities through dodgy residential developments in Johannesburg’s northern suburbs.
· The investigation into the irregular awarding of a Telkom manufacture tender.
· The investigation into an irregular Eskom tender.
· A multi-million rand fraud involving the transport of coal to Eskom power stations in Mpumalanga.
· Another suspect sale of a second Adega franchise – we can now prove similar M/O in the sale of 2 Adega restaurants.
· Suspect funding by the National Empowerment Fund in respect of the second Adega restaurant deal.
Existing cases where we have made significant strides and are aiming for closure shortly include –
· The PTH Construction, Zycon Construction and Atterbury Properties fraud.
· The deliberate non-payment to creditors by Stefanutti Stocks.
· The GDBS / Legend Lodges / Entabeni Lodge liquidation fraud.
· The Seakay Developments liquidation fraud.
· The Investec / AIN illegal phone tapping saga.
· The misrepresentation made to tenants of The Core shopping complex in Sunninghill.
· The non-payment in a commercial property deal in Bryanston involving Modus Vivendi Natuzzi furnishers (2.5 million rands).
· The irregular awarding of the winch tender involving the coal mine and new power station being developed in NW.
· The investigation into Abalengani / Investec / Westrust.
· The TETA investigation has expanded since the publication of the story in The Times regarding our investigation in late December 2010. In January we met with the CEO of the TETA and have expanded the investigation to include other service providers and TETA staff that may be guilty of corruption.
· The investigation into Eastern Engineering / Eastern Mining Supplies.
Extracts from our 2010 year end report -
IRS Forensic Investigations had a busy 2010 and below are some of the highlights. Please note that confidentiality is important to us - the client's mentioned by name in the following report gave us permission.

MEDIA

During 2010 the media covered several of our cases as well as our comments on topical issues.

The E-TV program 3rd Degree presented by Debra Patta produced the story of our investigation into the murder of Jayesh Hari.

Noseweek, The Sunday Times and The Cape Times all ran with the story of our investigation into Investec Private Bank’s illegal tapping of clients’ phones and their giving unlawful instructions to private investigation company AIN now known as SSG.

The Times and Drum magazine exposed the B.E.E fronting investigation that we conducted into PTH Construction, a company associated with well known developer ABLAND.

The Times also broke the story of our investigation into the alleged tender manipulation which took place at the Transport Education Training Authority (TETA).

Business Day ran several articles relating to Sea Kay Construction and our investigation into misappropriation of funds.

Several newspapers used us as their “industry experts” to comment on the FIFA 2010 security.

Our company was featured on SABC 1 television in regard to FIFA 2010 security.

Our company was featured on Radio 2000 “2010 and Beyond” discussing FIFA 2010 security.

Several newspapers, including The Sunday Times, Beeld and Rapport, ran with the story of the suspicious suicide of Advocate Greg Wynne and our subsequent investigation in conjunction with well known ex super cop turned PI Piet Byleveld from CSS Tactical.

HIGH PROFILE INVESTIGATIONS

IRS Forensic Investigations received several instructions relating to high profile matters.

METCASH instructed us to investigate ex directors implicated in a 70 million rand fraud which took place in Namibia and Angola.

Federal Mogul instructed us to investigate a syndicate involved with the theft of brake pads amounting to millions of rands.

Old Mutual (PLC) (London) instructed us to investigate the activities of a service provider they alleged to have misappropriated funds.

Several concerned travel agencies instructed us to investigate the alleged tender manipulation resulting in 1 travel agency receiving the majority of government work worth in excess of 1 billion rand per annum.

The owner of several patents used by Telkom instructed us to investigate the irregular awarding of a tender worth in excess of 40 million rand.

A creditor owed a large amount of money instructed us to investigate alleged underhand dealings taking place at Stefanutti Stocks.

A whistle blower brought to our attention the alleged VAT round tripping involving a Telkom service provider. We referred our findings to SARS.

We received instructions to investigate the developers of the RCI / The Core complex in Sunninghill where it was alleged that the developers did not have the necessary authority to allow tenants’ occupancy as council had not issued certification. These tenants suffered significant losses. Similar to our previous investigations into the Theodosio Brothers (Bel Air, Lonehill and Comaro Crossing shopping centres).

We were instructed to investigate the alleged tender manipulation involving the construction of the new Eskom power station and the awarding of the tender to supply winches.

Several property owners instructed us to investigate the alleged misappropriation of their properties by Investec and Westrust.

An aviation company instructed us to investigate the theft of aircraft parts at Lanseria Airport.

An international aviation company instructed us to assist in the recovery of aircraft held in Gabon.

A retired couple instructed us to investigate the alleged theft of their retirement savings by a franchisee of an Adega restaurant and the alleged misrepresentation made by the principal franchisor of the Adega Group of restaurants.

We were asked by the owner of Fuggles, a liquor importer, to investigate the theft of a significant amount of money involving the sale of liquor.

Several creditors and concerned investors requested our assistance in investigating multi-million rand company Global Design and Build Solutions, as well as Legend Lodges and IFA together with their involvement in the Entabeni Lodge and Zimbali Resort developments.
SECURITY PROJECTS

Our security division was involved with several projects this year.

· We supplied close protection services and vehicles to an American group involved with FIFA 2010.

· We supplied security for the launch of the new Adobe computer software.

· We supplied security for the launch of the new Tom Tom GPS.

· We consulted for several organisations involved with FIFA 2010.

· We drew up the master security plans for the FIFA 2010 fan parks / fan zones which were then utilised by several security companies.

· We supplied security for the Mzansi Hip Hop festival – the biggest event ever of its kind.

LIASON

Our investigation company has strengthened its relationship with the following authorities –

SARS

SAPS

SAPS SPECIALIST COMMERCIAL CRIMES UNIT

SAPS DIRECTORATE FOR PRIORITY CRIMES (HAWKS)

SIU

AFU

NIA

HRC

The Public Protector

IRS Forensic Investigations assisted the national authorities in a number of high profile cases including the illegal supply of arms to Somalia; the investigation into the increased poaching of Rhino and investigations into drug syndicates.

OTHER

Our company can now boast our own internal technical team specialising in CCTV system design, installation and maintenance at very competitive prices.

We are also importing our own quality covert CCTV systems.

Our new website www.irsa.co.za went live this year. We now also have an interactive forum.

Our CEO Chad Thomas has been asked to be the keynote speaker and chair of the 2011 Tender Fraud and Corruption Conference to be held at The Indaba Hotel during 2011.

BELOW ARE SOME LINKS TO SOME OF THE NEWSPAPER ARTICLES RELATING TO OUR INVESTIGATIONS DURING 2010.

http://www.timeslive.co.za/thetimes/article823768.ece/Medic-denies-that-family-members-doctored-tenders

http://www.farmitracker.com/reports/view/536

http://www.timeslive.co.za/local/article535054.ece/Company-used-me-as-BEE-partner

http://www.news24.com/SouthAfrica/News/Mystery-over-lawyers-drowning-20100906

http://www.timeslive.co.za/sundaytimes/article579430.ece/Smoking-gun-in-bank-spy-scandal

http://www.pinewswire.net/2010/08/smoking-gun-in-bank-spy-scandal/

http://www.timeslive.co.za/sundaytimes/article641595.ece/Cloud-over-lawyers-drowning

http://www.volksblad.com/Suid-Afrika/Nuus/Regsman-het-vermoed-iemand-wil-hom-doodmaak-se-private-speurder-20100906

http://www.beeld.com/Suid-Afrika/Nuus/Vrae-om-prokureur-se-dood-20100905

http://www.free-press-release.com/news-south-africa-s-foremost-private-financial-crimes-investigation-company-launches-new-website-1282121325.html

http://www.mmegi.bw/index.php?sid=11&aid=3451&dir=2010%2FJuly%2FWednesday7&utm_source=gazettebwmmegi.com&utm_medium=web&utm_campaign=AFL_TrafficShare