Secrecy around fraud at Blue Label Telecoms
There is a veil of secrecy around a multi-million-rand fraud scheme that was uncovered at Blue Label Telecoms.
The company alerted shareholders in its latest financial results announcement about a fraudulent scheme that had operated at a subsidiary since 2015.
The fraud was perpetrated by two former senior executives of the Blue Label subsidiary.
Blue Label Telecoms would not confirm the subsidiary or names of the executives involved in the fraudulent scheme.
It informed shareholders that the fraudulent transactions were performed outside the scope of the subsidiary’s field of commercial dealings.
Blue Label said it had identified transactions that amounted to theft from the subsidiary, which the executives tried to conceal.
The company signed settlement agreements with the guilty executives in late October 2021, where R315 million of their assets were signed over to Blue Label.
Trying to get more information from Blue Label Telecoms about the large fraud scheme proved fruitless.
Blue Label Telecoms’ co-CEO, Mark Levy, told the media that they laid criminal charges against the executives.
However, when asked for details — like at which police station they laid the charges and on which date — the company could not provide answers.
It is unclear why Blue Label Telecoms would not confirm who the perpetrators are, at which subsidiary the fraud occurred, and where it laid criminal charges.
Instead of providing details about the matter, the company said it would not like to comment on it further.
“Because this matter is now in the hands of the relevant authorities, Blue Label Telecoms would not like to comment on it further than what we have said already,” Blue Label Telecoms head of investor and media relations Lionel Adendorf told MyBroadband.
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