Cape Town - Former Fidentia boss J Arthur Brown was found guilty on two counts of fraud in the Western Cape High Court on Thursday.

Last week he admitted guilt on two major counts in his embezzlement trial and handed in a document with admissions on two charges related to the Transport Education and Training Authority (Teta) and Mantadia Asset Trust Company (Matco).

Teta advanced two promissory notes and two cash amounts totalling R200.3m to the Fidentia groups of companies as an investment on a non-discretionary mandate, of which R15m had been returned.

"We are satisfied the admissions (made by Brown) are sufficient for conviction," Judge Anton Veldhuizen said.

"At this stage I do not find it necessary to elaborate on the exact basis for this."

Brown admitted that these amounts were invested from time to time in asset classes different to those specified in the investment mandate.

He also admitted that monthly statements prepared for Teta between May 2003 and September 2006 were incorrect.

Regarding Matco, he admitted that Fidentia misrepresented itself by saying the full purchase price for the company would be paid before it took control of Matco.


Prosecutor Jannie van Vuuren said the case could’ve carried on for another year, with the outcome not much different from the finding on Thursday.

Brown was cleared of seven minor charges, including theft.

Sentencing will take place on April 29.

News24