Former SA Steel Mills owner Rafik Mohamed appeared in the Alexandra Magistrate’s Court in leg restraints on Wednesday as his bail application was postponed until 4 June.
The matter is expected to continue in the Specialised Commercial Crimes Court in Palm Ridge. Mohamed remains in custody.
Although the charges against Mohamed have not yet been publicly disclosed, they are understood to relate to the R1.1 billion corruption investigation involving funding the Industrial Development Corporation (IDC) provided to SA Steel Mills.
Mohamed was accompanied by a large group of supporters, some of whom said the case was a personal vendetta by Sachin Ahuja, the owner of a rival steel company, in a dispute arising from the sale of SA Steel Mills.
One of the supporters, who declined to be named, alleged that the prosecution was influenced by Ahuja. They said Mohammed had won three arbitration proceedings related to the acquisition of the company. The Mail & Guardian (M&G) has not independently verified the claims.
Mohamed’s court appearance comes after reports that he was detained at Midrand police station on Tuesday night. The development could mark a significant escalation in investigations surrounding the troubled steel manufacturer.
Sources familiar with the matter confirmed to the M&G that Mohamed was being held at the police station. The reasons for his detention and potential charges were not immediately clear.
The development comes amid investigations into SA Steel Mills, which received more than R1 billion in funding from the IDC and is under business rescue.
The company has been at the centre of disputes involving allegations of irregular financial transactions, questions over shareholder funding and claims relating to UK-registered company Emberton Limited. Mohamed and several parties associated with him have denied wrongdoing.
Mohamed is due to appear in the Specialised Commercial Crimes Court, which handles complex, financially motivated and non-violent Commercial Crimes, on Thursday.
Former SA Steel Mills owner Rafik Mohamed’s bail application was postponed until 4 June and the case transferred to the Specialised Commercial Crimes Court
