Three former executives of Delta Property Fund denied their involvement in any procurement irregularities and misappropriation. File photo: James White
Three former executives of Delta Property Fund denied their involvement in any procurement irregularities and misappropriation. File photo: James White

Former Delta Property Fund executives deny wrongdoing

By Edward West Time of article published Dec 14, 2020

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CAPE TOWN - Three former executives of Delta Property Fund, which last week disclosed some R46 million of irregularities following a forensic audit, on Friday, denied their involvement in any procurement irregularities and misappropriation.

The three executives, former chief executive Sandile Nomvete, former chief financial officer Shaneel Maharaj and former lead independent director Otis Tshabalala, said in a statement they had “always acted in the best interest of Delta” and they “categorically deny the accusations of procurement irregularities and misappropriation of funds... or any irregularity”.

They said their resignations were not motivated by the findings of the forensic investigation, but ”to allow for new leadership to drive the company strategy forward”.

“Although the (Mazars investigation) report was not shared with us, we were informed by the company that the report found no proof of misappropriation of funds by the executives as was alleged and reported,” they said.

They said the company paid market related letting commissions that were supported by valid, complete and duly authorised lease agreements, in line with property industry norms. These commissions were disclosed in Delta’s annual report for the respective financial years and the company continues to benefit from these leases, they said.

“Although we are not privy to the internal assessment conducted by the board, it is difficult to understand the significant write down in the valuation of Investment.

Property from R10.6 billion to about R8.7bn for the year ended February 2020, which is being correlated to the key issues identified in the forensic report.”

Delta’s share rose 3.57 percent to close at 29 cents by late Friday afternoon following a sharp more than 30 percent drop in the price the day before when the company announced some of the findings of the forensic report.

BUSINESS REPORT

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