Johannesburg - The Financial Services Board (FSB) has thanked The Star for raising the alleged corruption of its former chief financial officer, Dawood Seedat.

FSB chief executive advocate Dube Tshidi announced on Thursday that the board has now launched internal and external probes into the conduct of Seedat and curator Dines Gihwala, who has resigned.

Tshidi said journalists would sometimes bring information to their attention that the FSB was not aware of.

“That happened on June 6 when we received an e-mail from The Star with many allegations against Seedat. We are grateful to them for raising the issue,” Tshidi said.

The Star subsequently revealed how Africa Cash & Carry chief executive Edrees Ahmed Hathurani allegedly paid Seedat R12 million after Seedat allegedly threatened to close his firm through an SA Revenue Service audit.

Seedat denied he had been paid a bribe, claiming Hathurani had paid him R3m in tax consulting fees.

Tshidi said the FSB had basked Seedat if there was any substance to the allegations.

“He said ‘no’. In his subsequent resignation letter, he stated categorically that he denies the allegations, but he is resigning to protect the name and integrity of the FSB.”

Tshidi said the only way to establish the truth was to investigate.

“When there are allegations of this nature, it is followed by suspicion and everyone wants to know what else could he have been doing,” Tshidi said.

Tshidi reiterated that it was the organisation’s policy that any employee may not have any direct interest in any organisation regulated by the body.

“In a media report, I saw that they said insiders at the FSB who are close to Mr Seedat said he did this with permission. It cannot be. It is a pity I do not have any hair because I would have pulled it out,” Tshidi said.

The FSB will be advertising for a new chief financial officer at the weekend.

The organisation also said that regarding Gihwala, he e-mailed them that he was resigning as a curator from Fidentia Asset Management, Bramber Alternative and Fidentia Holdings.

Gihwala was declared a delinquent director by the Western Cape High Court last week, which means he is disqualified from being a company director for seven years.

Gihwala’s co-curator in the Fidentia matter, George Papadakis, was also named in the Seedat matter.

The Star