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The messy divorce of an accountant has degenerated into an embarrassment for accounting firm PwC and a Nasdaq-listed company.
Lientjie Kruger, an accountant for the South African subsidiary of Ceragon Networks (Nasdaq: CRNT), is being taken to the North Gauteng High Court by her estranged husband.
Derick Kruger wants his wife to be declared unfit to be a director, or a chartered accountant.
As part of his court documentation, he has submitted a large number of documents and WhatsApp conversations between his wife and Ceragon heads to the court that apparently prove this company paid bribes to a mobile network in Ghana and rigged their accounts. Ceragon specialises in wireless technology.
In addition, PwC has landed up in the crossfire. They are the auditors of Ceragon South Africa. The independent regulatory board for auditors (Irba) was now investigating one of PwC’s auditing partners, said Bernard Agulhas, CEO of Irba.
Derick Kruger says he blew the whistle on the auditing partner of PwC, which merely looked the other way, while in terms of legislation auditors are obliged to report alleged crimes and irregularities.
Due to “client confidentiality”, PwC spokesperson Sanchia Temkin declined to elaborate on whether PwC took the necessary steps when the allegations of bribery and irregularities were brought to their attention.
“PwC was contacted by Irba, and we are cooperating with the regulator’s investigation,” said Temkin.
The drama began when the Krugers, both accountants, formed a company that provided accounting services to Ceragon on a contractual basis. Derick later started farming full time, while his wife did the book-keeping.
When the couple’s marriage turned sour, Lientjie apparently asked Ceragon to cancel the firm’s contract with their company and to appoint her in her personal capacity. She now works permanently for Ceragon.
Derick now says in the court papers that his wife had a legal duty as the director of their company to act in the company’s best interest.
Because of his estranged wife’s “gross” violation of trust, he is now asking the court for her to be declared a delinquent director in terms of the Companies Act.
Derick has also alleged that his wife and a financial colleague from Ceragon were involved in concealing an alleged $50 000 (R800 377) bribe that the company paid in Ghana.
And he produced alleged WhatsApp communication between his wife and the colleague, in which the alleged bribe is discussed.
A document – apparently a print-out of Ceragon Nigeria’s financial statements – which deals with the controversial $50 000, was also submitted to the court.
Gert van der Merwe, Lientjie’s lawyer, said:
“We will definitely oppose the application, and he will lose.
“It is the result of a husband and father who cannot deal with the rejection.”
Van der Merwe says his client denies all allegations of dishonesty or that she acted in bad faith.
Concerning the contract with Ceragon that she allegedly stole, Van der Merwe said she did what a single mother had to do to protect her income.
They will provide answers in court about the WhatsApp conversations and the documentation that was submitted.
Tanya Solomon, spokesperson for Ceragon, said it was not appropriate to respond to allegations made during a family dispute.
“We would like to add that the allegations were brought to the attention of the company, were thoroughly investigated and found to have no foundation.
“It must be emphasised that Ceragon has always responded actively and readily to prevent any actions that are illegal or may be deemed to be illegal, and we will continue to do so.”
