Former Tongaat Hulett CEO Peter Staude and six others, some ex-directors – charged in a R1.5bn fraud case involving the sugar producer – have been granted R30 000 bail each.

The seven made their first appearance before the Durban Specialised Commercial Crime Court yesterday, Fin24 reports.

The charges relate to sales of the sugar producer’s land between 2015 and 2018. The other co-accused are former CFO Murray Munro, former MD of Tongaat Hulett Developments Michael Deighton, ex-Tongaat Hulett Developments planning director Rory Wilkinson, Kamasagrie Singh, Samantha Shukia and Gavin Kruger.

The report notes Kruger was not an employee at Tongaat but was professional services firm Deloitte's audit partner at the time. Deloitte audited Tongaat for 82 years before being replaced by EY.

‘When they were doing the sale, it is alleged that they were backdating it’ said provincial Hawks spokesperson Captain Simphiwe Mhlongo.

He explained that because of the alleged fraud, Tongaat’s financial reports had incorrect information that misled shareholders.

‘By allegedly doing those incorrect financial reports, they were getting huge bonuses and declaring incorrect profits. The actual loss that was suffered by Tongaat Hulett is R1.5bn,’ said Mhlongo.

The seven accused will reappear in court on 11 April.

Full Fin24 report

The prosecutions were welcomed by Tongaat Hulett.

Its company secretary Johann van Rooyen said the company ‘welcomes this development in the legal process and it will continue to co-operate with law enforcement authorities whenever required to ensure that those responsible for the historic mismanagement of Tongaat Hulett are held accountable'.

The Daily Maverick notes the company has some skin in the game since it, too, as it is taking four former executives to court in civil proceedings.

The facts guiding the two cases will overlap since they both concern the auditing irregularities.

Full Daily Maverick report