Divorcee Found Guilty Of Concealing Shares Worth Millions From Husband

Prosecutors in South Africa are pursuing incarceration for Gonasundree Naidoo, a woman found guilty of fraudulent behavior after hiding shares valued at millions of rands from a liquidator tasked with settling her and her husband’s combined estate after their divorce.

Naidoo, a resident of Sandton, was convicted for informing liquidator Prasothmen Naicker that her shares in her former employer, Robor, were worth R2.1 million, when in reality, their worth was twice that figure. Naicker’s probe uncovered that the shares were actually valued at R4 million, and additional investigation revealed Naidoo had sold them, with the money transferred into her sister’s bank account.

Naicker initiated a fraud case against the 55-year-old Naidoo, leading to her conviction. In his ruling, Magistrate Emmanuel Magampa stated that Naidoo bore the duty to fully report the proceeds from the share sale so they could be included in the estate’s assets.

“The accused sold the Robor shares in 2013, received R4,056,270, and when she was required to submit details of assets and liabilities in 2014, this sum was not revealed,” Magampa remarked.

“In my opinion, this was a deliberate effort to obscure the true amount obtained from the sale of the shares, and there is no lawful excuse for such conduct.”

Magampa elaborated that if Naicker had depended on Naidoo’s provided information, he would have accounted for only the lesser amount of R2.1 million, resulting in harm to the estate and her former spouse, Suthanthiran Naidoo.

Though the estate remains undivided, Magampa underscored the potential damage that might have occurred had the actual value of the shares not come to light.

During a sentencing session, the probation officer suggested correctional supervision for Naidoo. In contrast, prosecutor Adv Bongani Chauke contended that the state seeks imprisonment, referencing the Criminal Law Amendment Act, which stipulates a minimum 15-year sentence for fraud involving sums exceeding R500,000.

The case has been deferred until May, with Chauke planning to summon witnesses, including the ex-husband, to provide testimony supporting a harsher sentence.

In her trial testimony, Naidoo spoke about her strained marriage to Suthanthiran, alleging he coerced her into leaving her job and selling the shares. She claimed he threatened to reveal her extramarital affair and compelled her resignation to safeguard her reputation. Following their separation, Naidoo stated she directed the share proceeds to be deposited into her sister’s bank account.

Magampa observed that Naidoo’s account of her marital issues contradicts the legal stance that the shares belonged to the joint estate, and any funds from their sale should be part of the estate’s division.

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Nnamdi Okoli