Monday, June 5, 2006

British Virgin Islands companies used for receiving management fees from LeisureNet

LeisureNet trial continues at Cape High Court, South Africa. Former joint chief executives of LeisureNet Peter Gardener and Rodney Mitchell are accused of white collar crimes and face charges that include theft and fraud.

In these days another evidence - stating that Deloitte, the auditing and professional services firm represented by Lester Cotten, a senior partner, had assisted Peter Gardener and Rod Mitchell to falsify a note in the company's 1999 annual financial statements - appeared.

The evidence revealed that before an inquiry in terms of section 417 of the Companies Act that there had been a misstatement in the disclosure note of LeisureNet's 1999 annual financial statements. Several British Virgin Islands companies to receive the management fees had been mixed up.

During 1999 LeisureNet's offshore subsidiary, Healthland International paid the management fees (GBP 428,222 to each company) to Ajax Way Investments (Gardener’s offshore company), Clockwork (Mitchell’s offshore company) and Pinnacle (the offshore company of Hendrik Neethling, the former sales and marketing manager of the Health & Racquet Club).

The identities of these companies were not disclosed in the 1999 annual financial statements, but the names of other British Virgin Islands companies - Kinsman, Moreland and Baycroft - also associated with Gardener, Mitchell and Neethling, were wrongly disclosed in the note.
Article any source

No comments:

Post a Comment