They have since been released on bail of R15,000 each.
Image: Pixabay
Three men accused of orchestrating a multimillion-rand dairy distribution scam appeared in the Gqeberha Magistrate’s Court this week, after allegedly pocketing nearly R12 million for products that were never delivered to customers in Cape Town, KuGompo City and Gqeberha.
The arrests, carried out by the Hawks, follow an extensive investigation into claims that clients were billed and paid for dairy consignments that never reached their destinations.
Vivian David Sass, 66, Aladin Freddie Sass, 41, and Cheslin Peter Sass, 40, appeared in the Gqeberha Magistrate’s Court on Monday.
The trio, who face 48 counts of commercial fraud, were arrested by the Directorate for Priority Crime Investigation (Hawks) earlier the same day and released on R15,000 bail each.
Hawks spokesperson Warrant Officer Ndiphiwe Mhlakuvana said the case relates to a 2018 distribution agreement between Coega Dairy and Universal Holdings.
The agreement authorised the company to distribute dairy products to customers across Gqeberha, KuGompo City, formerly known as East London, and Cape Town.
Mhlakuvana said Coega Dairy later began receiving complaints from customers who had paid for products that were never delivered.
"In terms of this arrangement, it is reported that the consignment stock were supplied to Universal Holdings for onward distribution to retailers and other commercial clients," he said.
"Coega Dairy received numerous complaints from customers who had paid for products that were never delivered.
"Following these complaints, Coega Dairy ostensibly initiated internal inquiries and requested the distributor to furnish proof of delivery documentation for the transactions in question.
"However, Universal Holdings was apparently unable to produce the required documentation, as the deliveries reflected in the invoices had allegedly not been executed."
Mhlakuvana said the accused, acting in their capacities within Universal Holdings, then "systematically misappropriated the consignment stock entrusted to them".
"Additionally, misrepresentations made to Coega Dairy regarding the stock levels held at distribution warehouses, thereby concealing the alleged irregularities," he said.
"The matter was referred to the Hawks for intensive probing."
Mhlakuvana said investigations conducted by the Hawks established that the alleged conduct resulted in substantial financial prejudice to Coega Dairy amounting to over R11.9m.
"Investigations further revealed that the suspects allegedly sold the products to customers but failed to remit payment to Coega Dairy.
"Such meticulous investigation resulted in the arrest of the culprits on Monday."
The matter was postponed to March 30.