A senior accountant agreed that he used some of the more than R7 million he embezzled from a well-known Durban accounting practice to go on religious overseas trips and worship God.
When State prosecutor Surekha Marimuthu put it to Zakariya Cassim Vahed during court proceedings that he went on 37 overseas holidays, including some religious travel, in the company of his wife, he said “yes”.
Vahed appeared again in the Durban Regional Court this week for the more than 90 theft and fraud-related charges he faced, to do with the money he stole from an Overport-based accounting firm, Desai Jadwat Incorporated (DJI), and defrauding some of their clients.
He has already pleaded guilty in the matter before magistrate Sophie Reddy.
This week, further to a victim impact statement that was lodged, DJI’s founder and managing director, Cassim Ahmed Jadwat, 72, told magistrate Reddy how Vahed’s plundering of finances impacted him and the company.
Jadwat, a chartered accountant, also said that Vahed’s “lack of honesty and integrity”, caused him to halt his retirement plans and work DJI back to a position of stability.
DJI was established in the late 1970s and, over the years, relied upon Vahed to handle the accounting records of some well-known Durban businesses and institutions.
Given his seniority and the trust placed in him, Vahed was given access to DJI’s and some of their clients’ bank accounts.
Vahed joined DJI “fresh out of school” in January 1992 and was groomed in accountancy by Jadwat and eventually grew into a management position, even though he had not acquired any formal accounting qualifications.
A shortage of more than R4.3 million in the bank account of a prominent Durban school eventually led to the unmasking of Vahed’s multiple acts of embezzlement.
He had access to the school's bank account and looted the R4.3m between December 2013 and December 2017.
To avoid suspicion, near each financial year-end, Vahed would transfer money from other DJI clients’ accounts into the school’s bank account.
Once the financial year end passed, he would transfer the money back to the respective accounts.
In his plea statement, he also admitted that he stole money from DJI and deposited it into his personal account.
“I had access to DJI’s online banking facility and the relevant passwords and codes ...,” read the statement.
The charge sheet showed that nine of the 83 illegal transfers out of DJI’s account landed in Vahed’s wife’s bank account.
On seven occasions, Vahed falsely indicated that the various clients in question had paid DJI for services rendered, when they hadn’t.
He then acquired loan deals with the same clients, which he pocketed, for the exact amount as the service fees that were owed to DJI.
Between December 2015 and January 2017 he stole nearly R800 000 from a trust account managed by DJI, which he had access to, and in the name of a deceased family member.
He was also caught out for hiring a vehicle for his own use, paid for by DJI.
“I plead guilty to all the listed counts and I am remorseful,” Vahed said.
Initially, Jadwat supported the idea of Vahed receiving a non-custodial prison sentence as he indicated in a previous victim impact statement, but had a change of heart due to the accused’s “complete lack of honesty”.
Vahed apparently promised to make compensation for the stolen money, which included a R50 000 monthly repayment from his own accounting business and an initial payment of R1m, none of which materialised.
Jadwat believed Vahed’s compensation promises were a “ruse” and also an attempt to avoid the prosecution of his wife, who also enjoyed the benefits of his ill-gotten gains.
He said DJI’s “esteemed reputation”, which was built over many years, was damaged through Vahed’s acts.
Jadwat was mindful that he and the other directors were “personally liable” for the more than R7m that was misappropriated.
“As a consequence, DJI borrowed money from clients, friends and family, as no financial institution would finance such transactions, to address the shortfall,” he said.
Jadwat said he and the other directors also contributed from their personal funds.
One of their priorities was to ensure the theft did not affect the running of the school, which had a reputation of producing A-aggregate pupils.
Jadwat was chairman of the school’s board, a position that he has since relinquished.
“It has caused me much embarrassment.
“The accused was placed in a position of trust, it was abused. Clients now view DJI with a jaundiced eye, as an entity that cannot be trusted,” he said.
The matter resumes later this month.