State throws in the towel on fraud charges against Glodina bosses

A year after they first appeared in court, charges of fraud against the retail director and accountant of KwaZulu-Natal-based towel manufacturer Glodina have been withdrawn.

Fehaaz Eusuf and David Larkan, both from Durban, were advised when they appeared in the Palm Ridge magistrate’s court this week that they were free to go.

In a letter, advocate Gideon Nkoana, deputy director of public prosecutions in Johannesburg, said: “Having objectively and dispassionately” looked at representations submitted by the two men, “there are no reasonable prospects of a successful prosecution”.

When they first appeared, the Hawks said the pair misrepresented themselves and “submitted a fraudulent audit report when applying for funding from the Industrial Development Corporation”.

As a result, the IDC transferred about R35m into Glodina’s business account for development projects.

Glodina did not have a R10m surplus in its bank account as indicated in its audit report, said the Hawks.

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