@RevolutionaryASF

Former Cellucity employee ordered to pay over R50.6 million after embezzling R70 million A Western Cape High Court has ordered a former Cellucity employee to repay more than R50.68 million after it emerged she had misappropriated at least R70 million of the telecoms company’s funds over an eight‑year period. The employee, Sharlene Phillipson‑Garcia, who served the mobile company for about 16 years and latterly worked as assistant to the finance manager, resigned abruptly in July 2024 after being confronted with suspicious accounting entries linked to her duties. An urgent internal investigation revealed that between May 2016 and shortly before her resignation she had siphoned off more than R70 million through falsified transactions. She did not contest the basic theft allegations. Initially, Cellucity identified roughly R10.1 million in misused funds, prompting a court order to freeze bank accounts and prevent the disposal of nine immovable properties. As deeper probing unfolded, it became clear the scope of the embezzlement was far larger, leading Cellucity to pursue the balance. Phillipson‑Garcia argued the company couldn’t sue again after the first judgment, but Acting Judge Gavin Cooper ruled that each illicit act constituted its own cause of action, allowing the additional claim. Court papers show she channelled stolen funds through her own company, Basic Blue Trading 450 (Pty) Ltd, and into several family‑controlled businesses, including ones owned by her daughter and niece raising questions over whether these were used to conceal and launder the proceeds. The court ordered Phillipson‑Garcia and her company to pay Cellucity over R50.68 million plus interest and attorney‑and‑client costs. Further oral evidence will be heard later in 2026 to resolve disputed issues, including whether approximately R9.15 million of the funds were used to pay genuine Cellucity creditors. The case has underscored vulnerabilities in corporate financial controls and triggered calls for tighter oversight in employee access to accounting systems.