Businessman Rafik Mohamed has been granted bail of R100,000 by the Palm Ridge Commercial Crimes Court after spending two days in custody, following charges of fraud, theft and contravention of the Companies Act. The court imposed strict conditions requiring him to attend all future hearings from 18 August, avoid any communication with state witnesses, and surrender his passport and all other travel documents to the State.
Mohamed’s arrest and detention come amid an ongoing investigation linked to SA Steel Mills, a company that received more than R1 billion in funding from the Industrial Development Corporation (IDC) and is now under business rescue. The case has drawn attention because of wider disputes involving shareholder funding, company transactions and allegations connected to UK-registered firm Emberton Limited. Mohamed and parties associated with him have previously denied the allegations.
In his bail application, Mohamed told the court that he has spent years involved in the development and operation of a steel manufacturing business through the Pro Roof Group of Companies and SA Steel Mills. He said the industrial plant operated on property owned by Pro Roof Industrial Park, while Coin Wise Trading 42 was the shareholder and lender in relation to PRIP and SA Steel Mills. He added that the project was largely financed by IDC loans beginning around 2017, covering construction, plant and equipment, and working capital, with total exposure exceeding R1 billion.
Mohamed further stated that in 2023 discussions were held with Alfeco Holdings regarding the possible acquisition of Coin Wise’s shareholding and loan claims in PRIP and related interests. He said those talks led to a Sale of Shares and Claims Agreement in October 2023, later amended by addenda. According to him, the transaction took place against the backdrop of heavy IDC debt and a planned restructuring process. He claimed Alfeco and its representatives were given full access to financial and corporate records, took professional advice, and later assumed operational control of PRIP and SA Steel Mills.
He told the court that the dispute at the centre of the criminal complaint stems from that commercial transaction and related issues involving IDC facilities, financial statements, valuations, dividend entries and accounting treatments. Mohamed said these matters are already being dealt with in civil and arbitration proceedings. He added that he became aware of a criminal complaint only in November 2024 and believed it had been laid by or on behalf of Alfeco and PRIP, not by the IDC.
Mohamed also argued that he is a South African citizen with no intention of fleeing, saying Johannesburg is his home and business base. He noted that although he has a United Arab Emirates residency card valid until November 2026, he remains permanently based in South Africa. He told the court that his wife, children and relatives depend on him and that he suffers from chronic medical conditions, including asthma and severe sinusitis, which require ongoing treatment.
The State did not oppose his bail application.
