Cytech, an on-line gaming casino based in an offshore tax haven of Belize, was the entity which the executives revalued to create notional profits in Corpcapital in 2000 to set off a major decline in profits. Cytech was valued from zero to almost R500 million in two years, and then down to a nominal figure in the next two. Corpcapital held a 47,5% shareholding in Cytech. No disclosure of the materiality of Cytech, contributing over 60% of Corpcapital’s profits, was made to shareholders, and Cytech was not audited in that year by Corpcapital’s auditors, Fisher Hoffman. The accounting methods used mirrored those at Enron.

Media articles on Cytech

Finance Week 301002 – Bringing home the bacon
Finance Week 310394 – The art of accountancy
Finance Week 011003 – Calling institutional buyers
Finance Week 100903 – Cytech
Finance Week 280503 – No tally with reality
Finance Week 100903 – Valuation slaughter in store
Finance Week 260203 – Why Payne is wrong about Cytech
SENS 090904 – Disposal of equity in Netainment

Information submitted by Hamburger to Frangos in 2002
Frangos internal report to the board on Cytech 290602

Selection of information on Cytech furnished by Corpcapital to Myburgh

Letter of intent to set up Cytech 290798
Reserve Bank application by Corpcapital
Joselowitz statement on evolution of Cytech-s structure

Cytech structure

Cytech chronology of key events
Complex Cytech structure and related entities
Structural evolution of Cytech, Collett/SAB&T forensic report