Mogul Pat Malabela taken for a ride over fake security contract
Former PSL club owner and one of Limpopo's richest businessmen Pat Malabela is facing a bleak Christmas after losing more than R3-million in a bogus business deal.
Malabela, who previously owned Dynamos, was duped into entering into a security business deal with an alleged fraudster .
Police spokesman Mavela Masondo confirmed that the man has since been arrested and appeared in court earlier this month. He was remanded in custody and will appear in court again in January.
"I confirm that a case of fraud was opened by Mr Malabela at Midrand on 7 November 2017. One suspect was arrested. Investigation is continuing."
Malabela, who has interests in construction and tourism, declined to comment, saying the matter was before the courts. "I don't want to jeopardise the investigations and court processes," he said.
According to his statement to the police, he was introduced to the alleged scamster by his cousin.
"He had a contract document endorsed by Standard Bank relating to a business deal but had no finance to set the business in motion. So he needed financial backup. It was agreed that if Mr Malabela could do so [finance the deal], he will own 60% of the company.
"He did so and bought 17 LDVs and branded them. He even upgraded a security control [centre] and... equipped it. He gave R150000 cash to Mr [name of suspect withheld], who was accompanied by his friend. He promised he was going to buy uniforms but he never did. He kept on changing goal posts when asked about it," read the police statement.
At this point Malabela suspected something fishy and started investigating his new business partner. Standard Bank told Malabela the documents the suspect used to dupe him were fraudulent.
"Standard Bank called Mr Malabela and informed him that the documents were forged and are used by fraudsters to rob people of their money and assets."
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