Durban - A Pietermaritzburg mother of three, who was largely responsible for the closing down of Kay Makan Electronics, one of the province’s oldest and most popular companies, pleaded guilty to stealing more than R1 million during her time as an employee.
Delene Singh, 33, pleaded guilty to theft at the Pietermaritzburg Regional Court on Monday, and confessed to stealing R1 031 473 from Kay Makan Electronics between 2008 and 2011, while employed as an accounts clerk.
In her plea, Singh said she had initially stolen two cheques, the value of which she could not remember.
But then during the course of the year, the stolen cheques were detected by her financial manager, Shannilroy Baliram Batchu, who confronted Singh and then blackmailed her.
“He gave me a choice as to whether or not he would expose my theft or, alternatively, continue to steal cheques and pay him a portion of the value thereof,” Singh said.
Singh then continued to steal blank cheques, signed by Kanthylal (Kay) Makan, the owner of the company.
She then filled in the details and deposited the money into her personal bank account.
Once these cheques had cleared, Singh would draw the proceeds and pay Batchu his share in cash.
While Singh was on maternity leave, Makan became aware that something was amiss with the company’s finances, and Batchu turned Singh in.
When Makan confronted Singh with the theft, she immediately confessed.
She said she personally benefited from the theft in the amount of R400 000. Singh claimed the rest was given to Batchu, and that he was always paid in cash.
The Daily News established later that Batchu has not been charged as there was no documented proof of his involvement.
Laying her personal circumstances bare in mitigation of sentence, Singh’s advocate, Brad Osborne, submitted that Singh had suffered two late miscarriages in the time before she started working at Kay Makan, and that her husband had taken to alcoholism and was unemployed. Singh also developed a gambling habit, and most of the stolen money was spent on her addiction.
Osborne argued that it would be heartless to sentence Singh to a term of direct imprisonment, especially since she was the primary caregiver of the children and supported them financially.
Singh has an infant of seven months, a three-year-old, and a teenager in Grade 11.
Osborne said Singh had started paying Makan back the stolen money and to date has paid a total of R100 000. However, Makan had demanded Singh pay the remainder of the money in three installments, but this was beyond Singh’s financial capability, and he refused to accept R5 000 a month.
“She has accepted full responsibility for her actions and is deeply remorseful. A suspended sentence coupled with correctional supervision would be appropriate,” Osborne argued.
However, the state argued that Singh was not the victim in this case. The victims were Kay Makan and the 70 employees who lost their jobs as a result of her actions.
In a victim impact statement submitted to the court in aggravation of sentence, Makan explained that he first became aware of the theft while he was recovering from stomach surgery due to embryonic cancer.
“It came as a great shock to me, my family and staff. This episode impacted on the cash flow of the business in our four stores in KZN to such an extent that we had to negotiate with senior staff members to reduce their salaries,” Makan said.
But this did not ease the financial burden, and three years ago, two Kay Makan Electronic stores closed down. Eventually, Makan had to call it a day and the two remaining stores were forced to shut their doors.
“The entire ordeal has drained me emotionally. Closing the remaining stores was devastating. Kay Makan was a household brand. Our four stores employed over 70 people and some were employed for close to 25 years. There is no way to measure their grief, their trauma or their helplessness. Some are still unemployed, while others have taken on menial jobs to make ends meet,” Makan said.
The state argued that Singh had betrayed the trust of her employer to such an extent that it cost him his business, and that the only appropriate sentence was one of direct imprisonment.
Sentence will be delivered on July 30.
Daily News