Dresselhaus Scrap boss admits fraud

Heinz Dresselhaus last week pleaded guilty to fraud on behalf of the close corporation Dresselhaus Scrap CC in the Windhoek High Court. Consequently, Acting Judge Collins Parker found Dresselhaus guilty on 19 counts of fraud in his capacity as representative of the close corporation instead of in his personal capacity. This brought to an end a drawn-out fraud case over the fraudulent sale of scrap copper belonging to Telecom Namibia. The other members of the CC, Ettienne Johan Weakley and James William Camm, were found not guilty on all charges after Chief Prosecutor Danie Small closed the State&rsquo;s case against the two on Wednesday. When the trial started in January 2008, the three men were charged with 30 counts of fraud in their personal capacities. With the resumption of the trial last week, the State had amended the charges to have Dresselhaus charged as representatives of the CC instead. Dresselhaus then entered a guilty plea on behalf of the CC, but continued to deny allegations pertaining to his personal involvement with regard to the under-invoicing of scrap copper bought from Telecom Namibia. The allegations were made by Lutchmanan Ivan Ganes, a former Telecom employee, who was sentenced to an effective prison sentence of two years and a fine of N$100 000 in June 2005 after he had pleaded guilty to 13 counts of fraud. Business with Telecom Dresselhaus stated in a written plea explanation that Camm to his knowledge was not party to the fraudulent under-invoicing. Advocate Willie J. Vermeulen (SC) from South Africa, assisted by advocate Louis Botes (SC) of Namibia, emphasised in mitigation that there was a close business relationship between the accused and Telecom Namibia. He stated Dresselhaus Scrap CC won a tender for the recovery of scrap copper belonging to Telecom Namibia during 1995. They also won subsequent tenders from the company. In accordance with the arrangement between Telecom and Dresselhaus Scrap, the close corporation would purchase scrap copper from Telecom and thereafter export such scrap. This was an attempt to control and limit the theft and trade of stolen copper from Telecom in Namibia. They were the only company entitled to deal with scrap copper originating from Telecom Namibia. Ganes, the former procurement manager of Telecom, was appointed by Telecom to facilitate the appointment of Dresselhaus Scrap as the sole party entitled to purchase scrap copper from Telecom. Vermeulen stated that Ganes was a thoroughly corrupt official who did not hesitate to enrich himself at the expense of his employer./ He said Ganes devised the fraudulent scheme to under-invoice Dresselhaus Scrap for copper bought from Telecom. The scheme started in 1997 and ended in early 2001 with the suspension of Ganes. &ldquo;It is clear he [Ganes] was the author of the scheme. He persuaded personnel in the accounting department of the accused to go along in return for a share of the difference between the real price of the scrap and the under-invoiced amount,&rdquo; Vermeulen said. The discovery of the scheme brought to a halt all business transactions between Dresselhaus Scrap and Telecom. Vermeulen argued in mitigation that the financial consequences of the crime for Dresselhaus Scrap were devastating. It caused the demise of the company as a functioning business entity. He said Ganes concealed the fraud from the management of both companies and that the moral blameworthiness of Ganes by far outweighed that of the other participants. Earlier in his plea explanation Dresselhaus said Telecom was already compensated by N$2.4 million in settlement of a civil suit and that the amount included interest on outstanding amounts. &ldquo;This is the most relevant consideration in determining the sentence to be imposed,&rdquo; Vermeulen stressed. The case was postponed to June 17 for sentencing.

Dresselhaus Scrap boss admits fraud

Comments

Namibian Sun 2025-05-28

Please login to leave a comment

Dresselhaus Scrap boss admits fraud

Comments

Namibian Sun 2025-05-28

Please login to leave a comment

Login