Neither the ANC nor the police have been able to resolve a bitter dispute between two top officials of the Lenasia Traders' Association.

The vice-chairman of the LTA, Nithia Naidoo, has accused chairman Roy Naidoo of financial mismanagement.

The LTA acquired a 104-hectare property in Bangalore Drive, Extension 1, last year for R2.1-million and started building premises for the traders.

Nithia Naidoo is now claiming that, since 2004, Roy Naidoo has been collecting rentals from the traders at R3,000 a month and that R300,000 of those funds has not been deposited in the LTA account.

He also alleges that two other directors, including his wife and Bash Hoosein, were removed from the organisation without their knowledge and replaced with Roy Naidoo's wife and nephew, Shaun Govender.

He said that since the LTA was registered as a Section 21 company, he reported the matter to the Companies and Intellectual Property Registration Office (CIPRO).

In a letter to Roy Naidoo, CIPRO's senior legal adviser, Eric Helberg, said directors may be removed only at an annual meeting and would have to be informed of the company's intention to dismiss them.

Helberg added: "I call on you to explain these matters. Should you not elect to reply to these complaints, I will proceed as I see fit, as I view this matter in a very serious light.

"These allegations are so serious that I may elect to hand the matter over to the SAPS for investigation, with the view of possible prosecution."

SAPS Lenasia station commissioner Superintendent Steven Moodley said he called a meeting with both parties to resolve the dispute. "Both sides are being vindictive towards each other, laying charges and counter-charges. I called them in to express my dissatisfaction at how they were conducting themselves."

Local ANC councillor Prema Naidoo said he also met the two sides separately.

"There are serious allegations being band- ied about, and large amounts of money are involved. Traders have invested alot of money in this organisation.

"As a public representative, the ANC tried to help resolve their differences, but when it comes to allegations of financial irregularities, that?s a matter for the police."

A prosecutor at the Protea Magistrate's Court, Zanda Mthimunye, said Roy Naidoo had not been charged, but the state was investigating allegations of embezzlement against him. "He was arrested in September and released, as there was no evidence to support the allegations against him."

Roy Naidoo did not want to comment, referring the Sunday Times Extra to his attorney, Mohammed Coovadia.

Coovadia said his client was innocent of any charges levelled against him and said he was surprised the state was still pursuing the matter. Coovadia said they would be responding to the CIPRO letter.

Sunday Times