Regaining Premier Soccer League (PSL) champions Orlando Pirates have taken urgent legal action to freeze over R20m allegedly diverted from its accounts. The club filed an application at the Johannesburg high court on September 22, seeking to freeze four bank accounts linked to its former finance manager, Darryl Joselowsky. The accounts, with a combined balance of R20.2m, are held at Standard Bank.
An internal investigation by Orlando Pirates uncovered hundreds of suspicious transactions allegedly linked to Joselowsky. The club's commercial manager, Mpumelelo Khoza, said in an affidavit that Joselowsky had been employed by the club for over 30 years and had complete responsibility for managing bank accounts, payroll, and financial ledgers. This level of authority allowed him to capture, verify, and release payment batches independently.
The alleged irregularities came to light in July during a review of the club's management accounts. It was noticed that cash proceeds did not correspond with expected sales volumes. An internal accountant was instructed to review the financial statements, leading to the discovery of an initial anomaly involving an inter-company payment. Further investigation revealed payment references on bank statements reflected descriptions corresponding to legitimate supplier/rental expenses, but associated monetary figures did not tally with actual or expected supplier payments.
Standard Bank's monitoring systems had identified payments as potentially fraudulent, highlighting the use of Joselowsky's operator code and discrepancies between beneficiary names and verified account holders. The bank requested confirmation from the club on whether the transactions had been authorised and whether the intended beneficiaries had received the money. Orlando Pirates subsequently identified four accounts allegedly linked to Joselowsky.
Forensic accountant Alida Louise Jordaan analysed the transactions and identified R20.2m in payments that Pirates alleges were unauthorised and fraudulent diversions into accounts controlled by Joselowsky. The analysis of transaction logs showed R43m moving from the club's accounts into the four flagged Standard Bank accounts between September 29, 2016, and August 25, 2026.
The club's forensic analysis also uncovered hundreds of smaller payments, with a schedule prepared by Jordaan identifying 742 separate payments totalling R8.5m where payment descriptions allegedly falsely named beneficiaries. The affidavit alleges the investigation uncovered further instances of prima facie fraud involving payments to a previously dismissed employee.
Orlando Pirates is seeking an order preventing Standard Bank from permitting withdrawals from the four accounts unless a combined balance of at least R20.2m remains available. The club intends to institute proceedings for payment of the R20.2m, interest, and costs, and indicated that criminal proceedings are being pursued.
Key points
- Former finance manager Darryl Joselowsky allegedly siphoned R20m from Orlando Pirates.
- The club has launched a court bid to freeze four bank accounts linked to Joselowsky.
- Orlando Pirates is seeking to recover the diverted funds and pursue criminal proceedings.
