An Umhlanga businessman, faces multiple fraud charges for allegedly deceiving his partner out of R4 million in a call centre scheme.
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A 37-YEAR-OLD uMhlanga businessman faces multiple fraud charges for allegedly deceiving his business partner out of almost R4 million in a call-centre scheme.
Keegan Reddy was recently granted R50,000 bail in the Durban Magistrate’s Court.
According to court papers, Reddy and the 54-year-old businessman went into a partnership by establishing a call centre, with each holding an equal 50% shareholding in the company.
Reddy also owned a separate business, which specialised in setting up call centres.
It is alleged that as part of their arrangement, set-up costs for the call centre would be invoiced through Reddy’s separate business without any mark-up.
According to the court papers, Reddy and his business partner were to share the financial responsibility for establishing the call centre equally, with Reddy’s company acting as the channel for invoicing the expenses.
It is alleged that Reddy issued multiple invoices on various dates during 2023. For each invoice, 50% of the invoiced amount was paid by the business partner either personally or through his wife's account.
These payments, amounting to almost R2 million, were allegedly deposited into accounts belonging to Reddy, namely his business account or his private account.
According to court papers, Reddy allegedly misrepresented that the money paid by the business partner was being used for the purposes purported on the invoices, but instead were taken for his own personal gain.
It is further alleged that on October 25, 2024, Reddy unlawfully and falsely misrepresented to his business partner, with intent to defraud, that R1 million was needed as surety to the "payment system stakeholder forum" to help strengthen their company’s application for a debit order facility.
According to the court papers, Reddy allegedly knew that in truth and in fact, that there was no such surety required, and that the money was to be used for his personal gain.
On November 23, 2024, Reddy allegedly requested a further R1 million under the pretence that it would help strengthen their company’s application for a debit order facility, the court papers read.
Upon becoming suspicious, the business partner thereafter opened a case of fraud at the Durban North SAPS in 2024.
During his recent bail application, Reddy in his affidavit said that he was self-employed and generated an income of R60,000 per month.
The married father of two children, aged 16 and 5, said his monthly expenses included bond repayments, vehicle finance, school fees and transport, medical aid, fuel, household groceries and utilities.
He said his expenses currently exceeded his income, and that his business experienced a serious financial decline over the past three years, with a drastic reduction in revenue.
Reddy said he was the sole financial provider for his household.
He said his children and elderly mother were financially dependent on him.
Reddy said his wife underwent major brain surgery in November 2025, and was currently unable to care for their children or manage household responsibilities without assistance.
He said his continued incarceration would place his entire family unit in severe emotional and financial distress.
Reddy further told the court that he voluntarily handed himself over to the SAPS and that he was not a flight risk.
He said he did not have any pending criminal cases, however, he had one previous conviction for VAT fraud in 2018, for which he received a five-year suspended sentence, which expired in 2023.
His bail conditions included reporting to the police station every Monday and not contacting the State’s witnesses.
The business partner has since instructed attorney Avir Maharaj as watching brief.
The case was adjourned to May for further investigation.