Fidentia's Brown expected in court tomorrow

Fidentia chief executive J Arthur Brown is expected to appear in court in Cape Town tomorrow after he was arrested on charges of theft, fraud and money laundering on Friday.

"J Arthur Brown was arrested on the strength of a warrant following the investigation that was carried out on a separate leg of the bigger Fidentia investigation," said National Prosecuting Authority spokesperson Tlali Tlali.

He was arrested in Cape Town's central business district on Friday afternoon and appeared in the District Court. The case was postponed to Monday and Brown will remain in police custody until he appears in court.

Tlali said Brown's wife Susan and their children had left the country. However he would not elaborate on any investigations into her connection to the Fidentia case, or whether she had fled the country for fear of arrest.

Brown was only expected back in court on May 30 in connection with other charges that include fraud involving the Transport, Education and Training Authority (Teta). The fraud charge relating to Teta involves over R2 million. He is also facing fraud and theft charges in the regional court where it is alleged he used R5.5 million in Infinity loyalty programme funds to pay salaries and other expenses of Fidentia companies.

It is also alleged that a company named Fundi Projects was swindled out of R3 million. His former co-accused in this case, Fidentia financial director Graham Maddock, was sentenced to an effective seven years jail after a plea agreement in February.

A sequestration order on Brown and his wife's joint estate - which they have petitioned to appeal in the Supreme Court of Appeals - was also expected to be returned in the Cape Town High Court on May 26.

Brown was arrested in March last year and was out on bail of R1 million. - Sapa