Durban - The uMhlanga doctor on trial for allegedly running a brothel is suing a former employee-turned-state witness in the trial.
Dr Genchen Rugnath’s company, Zelpy Pty Ltd, is seeking nearly R24 million in damages for lost revenue from Urmilla “Veena” Budhram, his former manageress, who he claims had diverted business to rival accommodation establishments.
Rugnath, with his wife Ravina, as well as Sandile Zweni, Nduduzo Dlamini and Bhabha Dubazani, have pleaded not guilty to more than 150 charges, including racketeering, human trafficking, rape and assault.
It is alleged that Inn Town Lodge, owned by the Rugnaths, was a brothel where women and girls aged as young as 13 were found in February 2012.
Zweni allegedly operated a brothel from the Point area lodge with the Rugnaths' consent and knowledge.
Budhram was initially arrested with the five accused in 2012, but turned State witness. The trial is currently at the closing arguments stage.
The couple’s attorney, Anand Nepaul, has argued for their acquittal and for the Durban Regional Court to focus instead on Budhram.
According to the particulars of claim, Zelpy owns and operates the business known and trading as Down Town Hotel in the Durban city centre, and employed Budhram bet-ween March 2002 and February 2012.
Her duties, as listed in the claim, were the overall control of day-to-day management of the hotel; effective control of the revenue from the operations of the hotel; and to report and account to its accountant on a monthly basis on the revenue and expenditure.
She was in charge of all the accommodation bookings, meals and ancillary services required by guests; and in charge of and exercised control over the kitchen and catering services of the hotel.
She was referred to as being in a position of trust to ensure Zelpy’s business operated at an “optimum profit”.
“During the period of her employment, aggregating 474 weeks, through the abuse of her position of trust, (Budhram) unlawfully misappropriated the revenue due to (Zelpy), an amount of R50 000 a week, for her personal benefit,” read the particulars of claim.
Examples cited included diverting accommodation bookings from Zelpy’s business to other businesses she was associated with and receiving a reward from; and outsourcing the catering functions to herself without Zelpy’s knowledge or consent.
As a result of her “unlawful conduct”, Zelpy claimed Budhram defrauded and or stole R23.7m from the company.
Zelpy’s loss of revenue is its main claim, while the alternative claim is that Budhram and her estate has been “unduly enriched” by R23.7m due to her “unlawful conduct”, and at Zelpy’s expense.
The claim also said Zelpy only learnt of this unlawful conduct in December last year, when Budhram testified in the trial where the Rugnaths stand accused, and confessed to her theft. Zelpy is calling for judgment against Budhram for this amount as well as interest and costs of this suit.
Daily News
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