Former Africa Israel Industries and Negev Group CEO Avi Motola was questioned under caution today by the Israel Securities Authority (ISA) and put under house arrest, for NIS 400,000 bail. Motola is suspected of falsifying corporate documents and of fraud. Former Negev Group CFO Avihu Ivshitz and Customer Service Manager Galit Dori were also questioned and placed under house arrest.
According to the allegations, they falsified data in the company’s financial statements in 2011-2014, and misled shareholders by distorting details in the reports to the tune of tens of millions of shekels.
Africa Israel Investments Ltd. (TASE:AFIL) announced yesterday evening that the ISA had opened an investigation regarding irregularities that were discovered in “Some of the company’s home-design subsidiaries,” and that the offices of these subsidiaries had been searched by the ISA.
In April, it was reported that Africa Israel Group’s Negev Group had been operating in a state of complete financial, accounting, and managerial chaos for some time.
On these grounds, Africa Israel Industries made serious claims against its former CEO, Avi Motola, who was fired in mid-March, alleging: “Suspicion of unlawful activities being carried out by Motola, former company and Negev Group CEO, mostly taking money illegally, without reporting to the necessary parties, and/or unlawful use of Negev Group company funds for personal use, illegally, without reporting to the necessary parties.”
Avi Motola managed the home-design company Negev Group for nearly a decade, and was appointed CEO of the parent company, Africa Industries, three years ago. In March, Motola was suddenly fired. At the same time, Africa Industries reported a tremendous loss of NIS 16 million in 2014, most of it in the fourth quarter.
Published by Globes [online], Israel business news - www.globes-online.com - on June 10, 2015
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