Category: Crime & Corruption News

Businesses affected by the devastating public violence and looting that swept across Gauteng and KwaZulu-Natal in July have until 30 September 2021 to apply for government financial relief.

This comes after the National Treasury on Monday launched a registration portal for the registration of businesses that suffered losses.

The intervention forms part of the relief package announced by President Cyril Ramaphosa on 25 July 2021. As part of the package, a range of measures were being implemented by national and provincial governments to assist small and medium businesses that suffered damage or losses to rebuild.

In a statement, Treasury said the registration portal would collect data from affected businesses to better coordinate relief measures as well as to inform future interventions.

“It will provide a single governmental entry point for businesses to indicate the extent of losses they have suffered, and to access available facilities.

“The government calls on all business owners who were affected by the unrest between 9 and 19 July 2021 to register on the portal.”

The portal can be accessed on https://www.relief4sa.co.za .

Alternatively, business owners who experience problems accessing the portal may contact the toll-free call centre on 080 006 00850. With the exception of public holidays, the call centre will operate between 8am and 5pm on weekdays.

Treasury said data collected through the portal will be kept secure and would only be used to improve the delivery of support measures being administered through various national and provincial government entities.

“All businesses affected by the unrest are encouraged to register. The portal and call centre will remain open for affected businesses to register until Thursday, 30 September at 5pm,” it said.

KwaZulu-Natal Premier Sihle Zikalala has called on the police to hunt down the suspects linked to the murder of three women in Inanda on Saturday.

According to reports, the women met their untimely death during an African National Congress (ANC) activity, in preparation for the upcoming elections.

It is believed that while the three women were standing in a queue, an unknown gun assailant fired shots randomly and killed them, while others managed to escape the gun fire.

“We are deeply shocked, concerned and saddened by this brutal assassination of innocent citizens. We believe this is the work of thuggish elements that kill with impunity. We must not allow them to find a place to hide in this province,” Zikalala said.

The Premier said the killings bear the hallmarks of a desperate effort to use intimidation and violence “as a way of frustrating the will of the people and subvert democracy.”

He called on the police to hunt down the criminals who thrive on such violence.

“There is no election or vote that is worth the blood of our innocent citizens. We call upon the community to unite and work with the police to expose those who seem to believe that winning an election or becoming a candidate must happen at all costs, even if it means jumping over the corpses of innocent people,” Zikalala.

Zikalala extended his heartfelt condolences to the affected families and the community.

President Cyril Ramaphosa says the approval of three critical pieces of legislation will strengthen the criminal justice system and ensure harsh penalties for those found guilty of GBV.

“These gruesome acts of violence cannot go unpunished. They must strengthen our resolve to end gender-based violence in all its forms. We must strengthen our efforts across all fronts,” President Ramaphosa said on Sunday evening during his address to the nation.

On 1 September, the National Council of Provinces (NCOP) passed three bills – namely the Criminal and Related Matters Amendment Bill, Domestic Violence Amendment Bill and the Criminal Law (Sexual Offences and Related Matters) Amendment Act Amendment Bill – which will change the landscape in terms of how government departments, law enforcement and the courts deal with cases of violence against women and the vulnerable.

The House passed two of the bills – the Domestic Violence Amendment Bill and Criminal Law (Sexual Offences and Related Matters) Amendment Bill with amendments, and the two Bills were scheduled to be sent back to the National Assembly. The Criminal and Related Matters Amendment Bill, meanwhile, was scheduled to be sent to the President for assent.

In his address on Sunday, the President lamented that Women’s Month witnessed many GBV cases, at a time when the country had planned to celebrate the success of women in many fields.

Among other cases, Fort Hare law student, Nosicelo Mtebeni, was murdered and dismembered in East London; a Grade 1 pupil from Khensani Primary School in Soshanguve was raped in the school’s toilets; Palesa Maruping, was found hanging from the ceiling of a house in Khuma Location in the North West, and Pheliswa Sawutana was strangled to death in Kosovo informal settlement in Cape Town.

“The courts are increasingly handing down judgements for life imprisonment for statutory rape, robbery and aggravating sentences that involve rape.

“We continue to implement all the pillars of the National Strategic Plan against Gender-Based Violence and Femicide. Ultimately, the success of this work depends on the actions that we all take to end this pandemic of violence against women and children,” President Ramaphosa said.

He called on men to understand that the rights and freedoms guaranteed by the country’s Constitution belong to all people, men and women alike.

Social Relief of Distress

Touching on the recent public violence that occurred in Gauteng and KwaZulu-Natal, where a number of businesses were looted and destroyed, President Ramaphosa said government continues to implement measures to assist households, employees and businesses that have been affected by the pandemic and by the public violence.

“Since we reopened applications for the special Social Relief of Distress grant in the first week of August, we have received nearly 13 million applications. Of these, 8.3 million applications have been approved, and payments have started to these recipients,” the President said.

According to President Ramaphosa, just over 3.7 million applications were declined, mainly because applicants have other identified sources of income or are registered for assistance like the UIF and NSFAS.

“Around 845 000 applications are still in the validation process. Along with the other measures we have put in place, this grant is providing critical assistance to unemployed South Africans at this most difficult time,” the President.

The Special Tribunal has granted the Special Investigating Unit and the National Health Laboratory Services (NHLS) an order to freeze R42 million worth of luxury properties and funds linked to Johannesburg businessman Hamilton Ndlovu.

This was hot on the heels of a similar preservation order obtained by the South African Revenue Services (SARS) seizing R60 million.

The Special Investigating Unit (SIU) has over the past year investigated corruption allegations and the circumstances in which eight companies directly and indirectly linked to Ndlovu, obtained contracts worth a total of R172 million for the procurement of Personal Protective Equipment (PPE)  from the NHLS.

In a statement on Thursday, the SIU said: “The properties and money are preserved pending a review application which will be brought by the SIU and the NHLS to set aside the procurement transactions and to require Mr. Ndlovu and the recipients of the funds to pay back the money.

“The SIU and NHLS have ascertained that the transactions were obtained by abusing the emergency procurement procedures that were adopted by the NHLS in order to respond to the COVID-19 disaster during the first half of 2020.”

In terms of the order, Ndlovu and other respondents are prohibited from dealing in any manner with the funds and properties (including selling or transferring or mortgaging the properties) pending the final resolution of review proceedings to be brought by the SIU and the NHLS.

The Special Tribunal has granted the Special Investigating Unit (SIU) and Transnet a preservation order to freeze approximately R4.2 billion held in bank accounts linked to state capture corruption accused CRRC E-Loco Supply.

In a statement, the SIU said it believes that the funds were proceeds of unlawful activity and stand to be forfeited to the State.

The SIU, together with Transnet, approached the Tribunal to freeze the accounts following an intensive investigation, which were supported by interventions by the South African Reserve Bank (SARB) and the South African Revenue Service (SARS).

The SARB and SARS earlier raised suspicion that CRRC, a Chinese company, paid kickbacks, disguised as Business Development Services Agreements (BDSAs), to entities linked to allegations of State capture and/or allegations of maladministration and irregularities, ostensibly to influence the direction of tenders at Transnet.

“No evidence exists to suggest that the payments envisaged in the BDSAs were for services rendered, and the said payments are linked to the award of contracts and payments made by Transnet.

“It all started with blocking orders that were implemented by the SARB, where after SARS obtained a preservation order in the High Court, pending assessment of CRRC’s tax obligations and payments from the said amounts,” the SIU.

CRRC was awarded three contracts by Transnet to supply it with locomotives between 2011 and 2014 in respect of 95, 100 and 359 locomotives for a combined sum of approximately R25.4 billion.

Based on the findings in investigations conducted by Transnet and the SIU, the two entities have also instituted a review application in the High Court of South Africa, Gauteng Local Division in Johannesburg, under Case No. 21/11645, which is ongoing.

The preservation order, which was handed down on 31 August 2021, interdicts, restrains and prohibits CRRC from dealing in any manner with the funds (along with any and all interest that may be accruing to such funds) held by three banks in South Africa, and interdicts the said banks also from releasing the said funds, except for potential authorised releases, in respect of the funds to the SARB, SARS and SIU, based on the execution of their respective mandates.

The freezing order shall continue to operate in respect of any funds remaining in the accounts after the SARB Blocking Orders and/or the SARS tax assessments have been discharged and deducted.

The Department of Employment and Labour has slammed employers in the wholesale and retail sector for non-compliance with the Basic Conditions of Employment Act in the Eastern Cape’s Sarah Baartman District.

The department is undertaking a two-week long blitz, which kicked off with 45 inspections conducted in different sectors in the Sarah Baartman District.

Twelve inspections were conducted in the wholesale and retail sector. Three were conducted in the hospitality sector, 21 in miscellaneous sectors and nine in the farm sector.

Four compliance orders and one written undertaking due to underpayment of employees were given out in the wholesale and retail sector, with the employers being given 14 days to comply.

“The inspections saw a total of alleged 71 foreign nationals apprehended by Home Affairs Department and SAPS, with 68 of them being male and three female. Amongst these immigrants are nationals of Lesotho, Malawi and Zimbabwe,” the department said.

The department said those who were arrested will appear in court on Wednesday.

Employment and Labour inspectors are scattered in operation, along with the Sarah Baartman District Municipality, Departments of Home Affairs and Health, as well as the South African Police Service (SAPS) in an effort to scrutinise compliance with labour legislation in and around Addo and Kirkwood.

The aim of the inspections is to educate and enforce compliance with labour legislation, ensure compliance with the National Minimum Wage Act, Basic Conditions of Employment Act, Compensation for Occupational Injuries and Diseases Act, including the Immigration Act, and administer on-site vaccination.

“The department has noted with concern the rife allegations of exploitation of workers, in particular foreign nationals within certain sectors of the economy and areas within Sarah Baartman District. It is therefore the responsibility of the law enforcers to ensure those found to be delinquent face the full might of the law,” said the provincial Head of Department, Nomfundo Douw-Jack.

Inspections will continue in Kirkwood and Addo until 17 September 2021.

The Western Cape Department of Social Development is assessing its short- and long-term plans for the Vredelus Child and Youth Care Centre in Elsies River for girls who are in conflict with the law, after a group of armed suspects forced their way into the facility.

On Monday, a group of armed men overpowered security staff and attempted to access the girls in safe care.

“Emergency protocols were immediately activated, and all staff and residents were evacuated to a secondary, secure location. Staff and residents are receiving counselling, and parents of the girls are being contacted,” the department said.

The department extended its gratitude to the staff who acted swiftly to ensure the safety of the residents, the Department of Community Safety, security company personnel and the South African Police Service.

“Security measures have been put in place to protect infrastructure and the State Security Agency, as well as the Department of Community Safety, have been asked to assist with an investigation,” the department said.

The latest incident follows several prior attempts in August to access the facility by cutting through the perimeter fences, as well as ongoing safety incidents outside the centre.

As a result, the department is assessing possible alternative sites to accommodate girls in conflict with the law in the medium- and long term.

The speedy finalisation of disciplinary cases and implementation of consequence management remain central in instituting a culture of intolerance to corruption and fraud within the Home Affairs Department, Parliament says.

“While we welcome the implementation of the Counter Corruption and Fraud Prevention Strategy, the Portfolio Committee on Home Affairs underscored that it is only through effective consequence management that the department will successfully win the war against malfeasance,” committee chairperson, Mosa Chabane said.

The committee received an update on the department’s initiatives to counter fraud and corruption.

Chabane commended the suspension of five officials as a result of a Public Protector report, as well as the 215 arrests that have been effected since the inception of Operation Bvisa Masina in 2015. The arrests included 123 Home Affairs officials, 84 syndicate members and eight South African Police Service members.

While acknowledging that the justice processes can be arduous due to various reasons, the committee said there is a need to conclude internal disciplinary processes quicker to ensure consequence management.

The committee also expressed its appreciation to Home Affairs Minister, Dr Aaron Motsoaledi, who reported that he is engaging with Sport, Arts and Culture Minister, Nathi Mthethwa, with the aim of enabling him to charge an official that left Home Affairs for the Sport, Arts and Culture Department.

“We commend the action by the Minister, especially in the context of the worrying trend of officials that resign from one department when facing disciplinary cases, only to reappear in another department. The actions by the Minister will ensure that any official accused of wrongdoing is taken through the necessary process.

“The cooperation with law enforcement agencies is welcomed but must be strengthened at all times to close any gaps that might be exploited by criminals working together with officials of the department,” Chabane said.

The committee welcomed news that the department is performing at an average of above 70% in relation to investigating reported cases of fraud and corruption within 90 days, which will ensure the speedy resolution of cases.

“The committee has also committed, from time-to-time, to request updates on the disciplinary cases within the department,” Chabane said.

Despite this, the committee raised concerns regarding the slow turnaround times in vetting officials, as per the security requirements.

The committee called on the State Security Agency to increase its capability to ensure that vetting is done adequately within a reasonable time to prevent any unwanted elements from accessing the department’s service points.

Regarding security at Home Affairs offices, the committee said the lack of cameras and electronic monitoring systems is a longstanding concern, which affects the department’s ability to safeguard its systems.

The committee noted the financial challenges faced by the department and the entire public service in ensuring effective funding for programmes. The committee has urged the department to find workable solutions in order to meets its objectives.

Review process of visas and permits

Regarding the review process of visas and permits, the committee called on Motsoaledi to table a report whenever it is available to enable the committee to appraise itself on its findings and recommendations aimed at improving the permit system.

As the South African Revenue Service (SARS) intensifies its efforts to clampdown on tax fraud and non-compliance, police have pounced on two suspects for swindling the revenue collector.

In the first case, Anwar Gaffor on Monday appeared before the Palm Ridge Specialised Commercial Crime Court following his arrest for tax returns fraud.

Hawks spokesperson Captain Lloyd Ramovha said: “It is alleged that Gaffor submitted various fraudulent tax returns to the South African Revenue Service, which resulted in the receiver of revenue potentially losing R1 million in 2020.

“The timeous intervention by the internal auditors ensured that the actual loss amounted to R300 000.”

Gaffor was granted R1 000 bail and the case was postponed to 13 October, pending further investigation.

In the second matter, Adelle Fritz, a former senior accountant, also appeared in the same court facing charges of fraud and theft allegedly committed in 2015.

Ramovha said Fritz stands accused of fraudulently approving credit facilities for a company called Siyakhula Electrical for an amount of R500 000.

“Following an intensive investigation, Fritz was arrested on a warrant of arrest. The case has been postponed to 29 September for additional implicated suspects to be accounted for,” he said.

Former National Health Laboratory Services (NHLS) Chief Executive Officer, Joyce Mogale, has appeared before the Palm Ridge Specialised Commercial Crime Court to respond for her role in an alleged corrupt tender involving over R113 million in 2016.

In a statement on Monday, the Hawks said it was alleged that Mogale, 66, signed a contract with Blue Future Internet and Surveillance (PTY) ltd for the provision, maintenance and support of end-user computer hardware for a period of three years.

“The adjusted contract stipulated that the amount involved was not to exceed R83 million whereas the letter of acceptance of the offer made it clear that the value of the contract was only above R25 million,” Hawks spokesperson, Captain Lloyd Ramovha said in the statement.

He said the NHLS consequently paid the supplier R113 million, which exceeded the value of the contract by just over R87 million.

“The former CEO has been charged for fraud and contravention of Public Finance Management Act (PFMA) following her misrepresentations to the Board of Directors at the NHLS,” said Ramovha.

Mogale handed herself over to the Hawks’ Serious Commercial Crime Investigation team in Germiston on Monday morning shortly before her court appearance where she was granted R20 000 bail.

The case has been postponed to 17 September 2021 for a trial where she will be joined by her fellow accomplices who are also out on bail.

Meanwhile, in an unrelated case, a 38-year-old, Nomasonto Rikhotso who was employed as a manager at Power Life Global SA, was arrested for allegations of fraudulently transferring over R1.9 million into her own business Marindle Trading Enterprise’s account between April and May 2020.

Rikhotso has been released on R5 000 bail in the same Palm Ridge Court. The case has been postponed to 13 October 2021.