Keltria
02-15-2005, 02:45 PM
US pair nabbed for gold fraud
15/02/2005 16:39 - (SA)
Johannesburg - Two American citizens were arrested at Johannesburg's Melrose Arch on Tuesday in connection with a multimillion-rand gold-jewellery fraud, said the National Prosecuting Authority.
The two come from Virginia in the United States, and are directors of a company called Mega Gold, said NPA spokesperson Makhosini Nkosi.
They are accused of defrauding two South African companies - SA Royal Manufacturers (Sarm) and Via D'Oro (VDO) - between 1999 and 2004.
Sarm is 40% owned by the Industrial Development Corporation, the state's project financier.
VDO was closed down in 2001, owing R6m to Harmony Mine. VDO was 49% owned by the Free State Development Corporation, said Nkosi.
VDO manufactured gold rope chains, and approached the IDC for funding. The IDC proposed that Mega Gold market VDO's products in North America.
In February 2001, VDO was closed down. Mega Gold owes Sarm $4m (about R24.2m) for jewellery while Sarm owes Harmony R68m.
15/02/2005 16:39 - (SA)
Johannesburg - Two American citizens were arrested at Johannesburg's Melrose Arch on Tuesday in connection with a multimillion-rand gold-jewellery fraud, said the National Prosecuting Authority.
The two come from Virginia in the United States, and are directors of a company called Mega Gold, said NPA spokesperson Makhosini Nkosi.
They are accused of defrauding two South African companies - SA Royal Manufacturers (Sarm) and Via D'Oro (VDO) - between 1999 and 2004.
Sarm is 40% owned by the Industrial Development Corporation, the state's project financier.
VDO was closed down in 2001, owing R6m to Harmony Mine. VDO was 49% owned by the Free State Development Corporation, said Nkosi.
VDO manufactured gold rope chains, and approached the IDC for funding. The IDC proposed that Mega Gold market VDO's products in North America.
In February 2001, VDO was closed down. Mega Gold owes Sarm $4m (about R24.2m) for jewellery while Sarm owes Harmony R68m.