MONTIGNY EMPLOYEES STEAL MILLIONS

MBABANE – A complex web of fraudulent activities has been uncovered at Montigny Investments Limited, revealing the theft of about E2 million.

Montigny Investments Limited is a Swati-owned and operated diversified timber company, which was founded in 1997 by entrepreneur Neal Rijkenberg and has grown from a small family business into the largest private timber owner-operator in Southern Africa, with a turnover in excess of E1 billion.

The company’s website reports that the entity services approximately 40 per cent of the regional wet-off-saw timber market and has diverse timber-trading interests in South Africa, Eswatini, Mozambique, Namibia, Angola, Zambia and Japan.

Meanwhile, investigations have exposed a series of schemes involving three middle managers accused of siphoning company funds through abuses of the procurement system.

According to sources, the fraudulent activities spanned over 24 months and involved collusion between the managers and certain suppliers.

Scheme

The scheme reportedly saw the employees ordering items under the guise of being required by Montigny Investments Limited’s  various departments, only for the goods to be redirected to their personal properties.

It is alleged that the stolen materials were used to expand personal businesses, construct homesteads and even build chicken sheds.

Sources further claimed that some of the implicated employees recouped supplies from the suppliers to develop their private properties, including substantial infrastructural improvements.

Montigny Investments Limited Chief Executive Officer (CEO), Andrew Le Roux, confirmed the allegations and ongoing investigations.

“Let me start by confirming that there is indeed an investigation into fraud committed at the Bhunya Mall site,” he said.

Le Roux revealed that the fraudulent activities involved collusion between the company’s sawmill and store departments and had been ongoing for over two years.

He added that the scheme implicated three employees—two of whom had resigned, while the third had their employment terminated.

“So basically, it was committed in collusion with suppliers, where suppliers misidentified items being ordered. It appeared as though the items were for Montigny, but they were actually sent directly to the employees involved,” Le Roux explained.

He further stated that the estimated loss was currently between E1.5 million and E2 million.

The CEO described the implicated employees as senior middle managers, noting that two had been with the company for many years, while the third was a relatively newer employee. Despite their significant salaries, the employees abused the company’s ordering system for personal gain.

Le Roux expressed his dismay at the incident, stating: “It was a trust relationship. These employees used Montigny’s ordering system to build their businesses, construct chicken houses and complete their homes. It has been a terrible shock to the management of Montigny. Some of them were almost like family to us.”

The CEO urged employees to come forward if they had been involved in any dishonest activities.

“If anybody has been involved in anything like this in the past, it is important to confess and let’s find a way forward. However, it is guaranteed that if the company discovers any unlawful action, the strongest possible action will be taken,” he warned.

Le Roux also confirmed that Montigny had reported the matter to the police, and an enquiry file had been opened to assist in potential legal action aimed at recovering the stolen funds.

He stated: “We are still investigating, and at the right time, we reserve the right to hand a file over to the police. If suppliers are involved, they also need to review their employees’ conduct.”

Montigny’s management is reportedly considering pursuing legal action under the Prevention of Organised Crimes Act (POCA) of 2018, which could lead to the preservation of movable and immovable properties belonging to the suspects.

This measure would aid the company in recovering its financial losses.

Meanwhile, Chief Police Information and Communications Officer Senior Superintendent Phindile Vilakati, confirmed that an enquiry file related to the fraud had been opened and that the investigation was ongoing.

The Montigny fraud case echoes a similar scandal at Eswatini Railways (ESR), where employees were implicated in fuel theft schemes that funded the construction of luxury homes and the purchase of vehicles.

Siphoned

ESR investigations revealed that train drivers and petrol attendants siphoned diesel from both local and Transnet trains, amassing significant wealth over several years.

In the ESR case, workers strategically positioned within the company colluded to steal fuel, sometimes masking discrepancies by replacing stolen fuel with that taken from Transnet trains.

One implicated employee reportedly constructed 19 bedsitters, while others purchased vehicles and vacant land. The State has since obtained preservation orders on properties linked to the ESR suspects under POCA.

In this instance, intensive investigations by ESR and the police revealed that some train drivers and petrol attendants accumulated massive wealth through money obtained from the theft of diesel belonging to the company (ESR) and trains from Transnet.

Transnet is the largest and most crucial part of the freight logistics chain that delivers goods in the Republic of South Africa. The theft reportedly began in 2018 and went undetected for over five years. Per the investigations, the theft was of such magnitude that the locomotives or trains were emptied of all the fuel along the way.

The problems of fuel theft at ESR date back decades and are allegedly perpetrated by a well-orchestrated clandestine group of ESR employees.

It was found that the implicated employees were strategically placed into certain positions (from petrol attendant to train driver) so that the theft of fuel at the company was done with ease and regularity.

Diesel

As a result, the train would be pulled with the use of alternative engines to the nearest station, under the impression that it had developed mechanical faults yet it was incapacitated by the siphoning of the diesel.

During investigations, it was revealed that members of the syndicate, consisting of the employees, received E5 000 to E15 000, being monies derived from the sale of the stolen fuel.

One of the implicated workers, who is said to have been the mastermind, is said to have constructed 19 bedsitters, 10 of which are situated at KaShali in Manzini and the others at Mpaka.

Another implicated worker is said to have purchased different types of motor vehicles and when investigators tried to trace them, they discovered that he had sold them.

As per the investigations, the organised criminal enterprise in the theft of fuel from Eswatini Railways was cash-based and this was reportedly revealed by some of the employees involved in the syndicate.

An internal investigation revealed that train drivers were siphoning fuel from both the local locomotives as well as from Transnet trains. As a consequence, other train drivers have been charged internally for theft of fuel.

According to ESR, investigations into its fuel management books revealed that proper records were not kept and some books were not furnished.

Those that were furnished to investigators showed discrepancies on the recorded information. The company is said to be currently reconciling fuel orders, receipts and delivery notes from the Finance Department, from the financial year 2018-2023.

Another modus modus operandi for stealing the fuel was that fuel purchased by ESR would be partially delivered and the remaining quantity would be taken to the illicit buyers.

Discrepancies

It was discovered that fuel discrepancies resulting from the theft from ESR trains would at times be masked by replacing the fuel stolen from the railway company’s trains with fuel stolen from wagons of Transnet trains.

The State has since obtained an order to preserve movable and immovable properties belonging to the suspects, through the Prevention of Organised Crimes Act (POCA) of 2018.

ESR Cargo Assurance and Security Officer Cydwell Masuku was deposed to an affidavit, outlining how the theft of diesel was uncovered.

Masuku first outlined that ESR buys fuel (diesel and petrol) in bulk to fuel its locomotives as well as that of Transnet trains. He stated that the trains were fuelled at ESR’s fuel depot at Mpaka Railway Station.

His evidence was in the course of his duties, he received information that fuel was being siphoned from both the depot, as well as the locomotives.

Masuku said he reported the issue to his supervisors; being the director of operations and technical services as well as the CEO.

He said police officers from the Lubombo Region were engaged and they confirmed knowledge of the matter and that they were investigating cases involving Thulani Bhembe and Ncamiso Makhubu.

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