R54m IDC loan fraudsters released on bail

Monday, November 7, 2022

Two people who are alleged to have defrauded the Industrial Development Corporation (IDC) of over R54 million in 2015 were on Friday released on bail by the Palmridge Specialised Commercial Crimes Court.

The two, Molatelo Lorraine Masipa (43) and Leago Marcia Motla (44), reportedly between August 2014 and October 2015 defrauded the IDC through a funding application to procure a sawdust briquette machine from France, meant to process coal.

Gauteng Hawks spokesperson, Captain Lloyd Ramovha, said after the funds were approved, Masipa reportedly procured a similar machine from China for R1.2 million.

“Motla allegedly assisted Masipa in forging the invoices that were sent to the IDC after the transactions. The pair misused the funds for personal benefit after Masipa laundered the funds in different accounts. 

“Both accused were arrested on the same day that they appeared in court. The court has granted Masipa R50 000 bail ,whilst Motla was granted R10 000 bail,” he said.

The case was postponed 29 November 2022, pending docket disclosure. 

According to media reports, in the IDC’s 2014-2015 financial report, Masipa’s company, Semona Eco, was funded to establish manufacturing facilities in Midrand.

A Mail & Guardian report said the project would manufacture “compressed biomass logs, mainly for the braai and fireplace market”.

At the time, the IDC confirmed that Masipa had failed to make repayments on the R58 million loan since December 2014.

Documents seen by the M&G indicated the loan was to be repaid in 71 instalments of R320 000 a month.

“The IDC has since opened a criminal case against Masipa and launched liquidation and sequestration proceedings to recoup the funds. The hearing is set for later this month,” reported the M&G. – SAnews.gov.za