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Two senior managers of Saambou Bank have appeared in Pretoria High Court on fraud charges
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January 30, 2008, 06:30
The Pretoria High Court has heard how senior managers of Saambou Bank benefited from loans they secured from the bank to buy shares at Saambou Holdings, without any bank charges.
Forensic auditor Johann van der Walt also told the court that the high ranking officials would continue for five years without any repayment, while enjoying the returns. Saambou Bank was placed under curatorship in February 2002 after financial mismanagement.
The two accused, Charles Edwards and Gerhardus de Clercq, pleaded not guilty to charges of fraud, corruption and contravening the Company Act. Their former CEO Johan Myburgh died of cancer before he could appear in court.
Van der Walt said the accused went ahead and bought shares in the company - despite legal advice that directors did not qualify to participate in the Share Loan Schemes.
He said they would from time to time change the rules governing the owning of shares and had at some stage written off all the debts. The case continues.
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