R17 million for “adverts” in The New Age

The New Age newspaper has been implicated in a money laundering scheme in which R17 million was paid to the publication using fictitious invoices for advertising.

According to the Sunday Times, Regiments Capital director Litha Nyhonyha said in an affidavit that the money was paid by a former director at the company, Eric Wood.

The affidavit is part of a court case between Regiments and Wood.

“Wood misused and abused his position… to allow Regiments to be used for the laundering of payments made from an unknown entity to the Gupta-owned The New Age Newspaper,” said Nyhonyha.

Nyhonyha stated that Wood and Gupta-linked executive Ashok Narayan conspired to move the money, with Wood initially sending Narayan three invoices for R5 million each.

Narayan then sent invoices from The New Age for the same amount to Regiments for advertising.

Nyhonyha said Regiments has never placed advertisements with The New Age newspaper.

Narayan and Wood did not provide comment in the report.

The full report is in the Sunday Times of 20 November 2016.

Now read: Advertise with The New Age or you will be dealt with

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R17 million for “adverts” in The New Age