South Africa: Delta Property Fund’s House of Cards Flagged in Forensic Investigations
When the founding CEO and CFO of Delta Property Fund abruptly resigned with immediate effect at the end of August, it was clear that something was amiss at the real estate company. This followed a failed merger with Rebosis.
In a JSE news service announcement on Tuesday 3 November, Delta Property Fund provided a chilling update to investors, which has conjured up fears of another potential case of corruption and mismanagement in the private sector.
Delta, which owns a range of office properties that are largely occupied by government departments and entities, was left leaderless when its top brass, Sandile Nomvete (CEO) and Shaneel Maharaj (CFO), resigned with immediate effect in August. Adding insult to injury, Delta COO Otis Tshabalala also abruptly left the company, electing to not complete his notice period that was initially announced at the beginning of July.
A month later, the Delta board announced that it had initiated a second forensic investigation into shenanigans relating to alleged procurement irregularities and misappropriation of funds by senior executives. Delta has not yet offered specific details on the allegations faced by the trio of former executives and it hasn’t made the findings of its forensic investigations public…