FSB receives clean audit after Seedat investigation

Former CFO did not compromise internal audit – FSB.

PRETORIA – Despite corruption allegations against its former chief financial officer (CFO), Dawood Seedat, the Financial Services Board (FSB) has received a clean audit from the Auditor General on its financials for the year ended March 31 2014.

In a statement issued on Thursday, the FSB said that following “two extensive reviews”, which resulted from the allegations made against Seedat, no evidence could be found “of a breakdown of internal controls within the organisation”.

Seedat resigned in June this year, after it emerged that he threatened to close Edrees Ahmed Hathurani’s Africa Cash n Carry through a South African Revenue Service (Sars) audit, and in so doing extorted R12 million from Hathurani, the CEO of the wholesaler. Seedat, who was a former Sars employee, denied that he had extorted money from Hathurani and told the Sunday Times that Hathurani paid him R3 million in consulting fees for tax advice.

This emerged after the Star newspaper received a video of him accepting money at a Midrand mosque from Hathurani’s associates.

After the damning evidence emerged and the dust had settled, FSB auditors launched a review of financial statements they had signed off under Seedat’s tenure. “The FSB review included detailed internal enquiries into the performance and functions of the former CFO,” the FSB said.

No irregularities were uncovered, according to the regulator.

“The management of the FSB is confident that neither it, nor any of the entities it regulates, has suffered as a result of any actions of Mr Seedat,” it said. “The FSB is committed to ensuring that the organisation and its employees are held to the highest ethical standards and to following a zero tolerance approach towards matters of corruption.”

Dube Tshidi, the CEO of the FSB said last month that if the corruption allegations brought against Seedat are found to be true, then he would wish to see Seedat prosecuted.

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