An arbitration tribunal in South Africa has ordered Hussun Abdul Khaleq Omar, the former CEO of Amaanat Investment Holdings (AIH), to repay R354.84 million due to unauthorized use of company funds. This ruling was delivered by retired judge Ashley Binns-Ward, who presided over the arbitration process, which the involved parties agreed to pursue as part of a civil claim.
Arbitration findings
The 103-page ruling from the arbitration tribunal indicated that AIH had substantiated its claims against Omar. Arbiter Binns-Ward concluded that Omar used company funds without authorization and defined his actions as theft in the civil-law context. Testimony presented during the arbitration suggested that Omar admitted to his cousin, who is also an AIH lawyer, that he had misappropriated approximately R40 million without board or shareholder approval, for which he allegedly offered to repay the funds.
Omar contended that the funds were payments made to the accounting firm Kreston KwaZulu-Natal based on invoices. However, the accountant’s documents were deemed suspicious, indicating potential forgery, and Omar did not provide testimony during the proceedings. Financial experts for both parties noted that a total of R646 million was transferred from AIH to Kreston between 2013 and 2021.
Criminal case and appeal
In July, Omar made his initial appearance in the Durban Magistrate’s Court facing charges that include 22 counts of fraud or theft and 12 counts of money laundering. Investigators allege that he used more than R29 million from AIH for luxury properties in Cape Town and Houghton, the purchase of a Porsche, and various precious metals.
During a bail hearing, which resulted in a set amount of R200,000, Omar denied the allegations laid against him. His next scheduled appearance in court is set for October. The arbitrator also ruled that Omar is responsible for AIH’s legal costs on a punitive basis. Claims against other entities involved, including Kreston, were dismissed, albeit Rapid River and FHO Trust were ordered to bear joint liability with Omar under specific circumstances defined in the arbitration ruling. Omar has until October to lodge an appeal against the decision, which will be reviewed by a panel of three retired judges in accordance with the arbitration agreement.
Why It Matters
This ruling highlights issues of corporate governance and financial accountability within investment firms, emphasizing the legal implications of mismanagement and the financial risks associated with unauthorized transactions. The outcome of the ongoing criminal case will further determine the legal consequences for Omar and the broader impact on AIH’s operations.
