| According to the developer's valuation, the developer would receive commission on the excess amount and waive his normal fee. OF&A was called in after the developer was informed by the elderly owner that that the property was sold for only R1-million. This meant that the developer was not entitled to a commission or her professional fee in terms of the contract. OF&A's team established that the property had been sold to a third party, who, in return, sold it for R10-million to a big corporation's pension fund. The second sale occurred before registering the Title Deed purchased from the elderly owner. The Title Deed was transferred straight to the pension fund. The inconsistency led OF&A's investigators to expose a massive Fraud scam running into tens of millions of rands. The culprits' modus operandi was to find land at a bargain price and submit it to their partners within the corporation. The land would them be valued at substantially more than its price and the pension fund would purchase the land at the inflated price. The third party paid the original owner an extra R750 000 for his co-operation and shared the remainder of the "profit" with his partners. The collaborators arranged for the corporation to buy the property worth only R2.5-million, for R10-million. This meant the perpetrators paid only R1 750 000 for the land. The developer confronted the original owner with the evidence, leaving him no choice but to pay the developer his full commission on R2.5-million. OF&A also found evidence connecting the culprits to other similar Fraud scams involving millions of rands. They were charged and convicted, bringing to an end to one of the most sensations Fraud scams in South Africa. |