Rafik Mohamed out on bail

The Palm Ridge Commercial Crimes Court has granted businessman Rafik Mohamed a R100 000 bail, after spending two days behind bars. Charged with fraud, theft and contravention of the Companies Act, the court slapped Mohamed with strict bail conditions, which included: Attending all court hearings from 18 August, with a warning that failure could lead to another arrest. Ensuring that he does not communicate with state witnesses. Handing over to the State his passport and all other travel documents. The development comes amid ongoing investigations linked to SA Steel Mills, which received more than R1 billion in funding from the Industrial Development Corporation (IDC) and is currently under business rescue. The company has been at the centre of a series of disputes involving allegations contained in affidavits, questions around shareholder funding and claims relating to transactions involving UK-registered company Emberton Limited. Those allegations have previously been denied by Mohamed and associated parties. The detention follows months of scrutiny surrounding the affairs of SA Steel Mills, including criminal complaints lodged with law enforcement authorities and questions over the flow of funds linked to the company. In his bail application affidavit, Mohamed said he has for several years been “involved in the development and operation of a steel manufacturing business conducted through the Pro Roof Group of Companies and more recently the SA Steel Mills (Pty) Ltd (“SASM”) and related companies”. “The core industrial plant was operated by SASM on immovable property owned by Pro Roof Industrial Park (Pty) Ltd (“PRIP”). “Coin Wise Trading 42 (Pty) Ltd (“Coin Wise”) was the shareholder and lender in relation to PRIP and SASM. “The project was funded predominantly by the IDC under loan agreements concluded from about 2017 onwards, including construction finance, plant and equipment loans and working capital facilities. “The IDC exposure was substantial, in excess of R