Former EPRU president Cheeky Watson arrested over R12m fraud
For mer Easter n Province Rugby President (EPRU) Cheeky Watson and three others appeared in the Port Elizabeth Magistrate’s Court yesterday on charges of fraud and money laundering involving millions of rand.
Watson, 63, Nadia Gerwel, 51, Mandisi Mkaza, 35, Andrea Joleen Wessels and her company Zeranza are facing 43 counts totalling R12 million for “circumventing the procurement process” between the Nelson Mandela Bay Municipality, National Treasury and Access Management.
According to the State, Gerwel and Wessels, who were good friends, conspired to defraud the metro in a manner designed to enable them to utilise Integrated Transport System (IPTS) funds to make payments to bank accounts in Wessels’ name and her company Zeranza.
The indictment reads that the pair did this “under the guise that said payments were for genuine and true IPTS-related expenses”.
At the time Gerwel was employed at the Nelson Mandela Bay Municipality as an assistant director in the finance department. She managed all funds which were allocated to the IPTS project.
Robert Netshiunda, spokesperson for the Hawks, said the charges related to money that went missing from the Nelson Mandela Bay municipality that was earmarked for the IPTS.
The State alleges Gerwel and Wessels, with the assistance of Makasa, caused a false trail to be created in the metro’s books.
Makasa is a former director of Laphumilanga Transport Services, the entity represented co-operatives including the taxi association.
Twenty-five buses sit idle because the project has failed to take off since its inception in 2009.The multimillion-rand IPTS is regarded as the city’s biggest corruption scandal.
The State alleges that during February 2013 Watson joined a fraudulent scheme in cahoots with Gerwel and Wessels. During this period EP Rugby was an anchor tenant at the Nelson Mandela Bay Stadium. The State alleges that: Watson caused a false invoice to be issued by EP Rugby to Access for the amount of R 2 998 209; and
Access paid that amount to EP Rugby Union on February 15, 2013;
Wessels caused an invoice for that same amount to be issued by her company, Zeranza, for so-called services rendered to EP Rugby on that same date; and
The amount of R2 998 209 was transferred on February 18, 2013 on the instructions of Watson to Zeranza.
Responding to questions on speculation over the link that EPRU is said to have had in the scandal, Netshiunda said that the union was not under investigation. However, Nelson Mandela Bay Ratepayers Association member, Kobus Gerber, alleged otherwise and said money was used to keep the then cash strapped EP Rugby afloat.
EP Rugby was permanently liquidated in August following an order made in the Port Elizabeth High Court.
The union was provisionally liquidated in March last year and was given three months to come up with a business rescue plan.
SA Rugby subsequently took over the administration of EP Rugby, but later announced that the mystery investor who had wanted to buy a 49% stake in the union had pulled out of the rescue plan.
Two groups of EP Kings players, comprising 36 players, had brought the initial liquidation order in an attempt to recoup millions of rand in unpaid salaries.
“You must know one thing, since 2008 EP Rugby never had sponsorship for rugby. They basically sidestepped the procurement processes to chan- nel funding through Access Management for EP Rugby and that’s where everyone got involved and got a slice of the cake,” said Gerber.
The four accused were arrested yesterday morning by the Hawks when they handed themselves over. They were subsequently released on bail of R2 000 each. The State did not oppose bail.
The court made an order that the media were not allowed to take photos of the accused while they were in the court building. Media covering the case were watched closely by court officials during proceedings.
The matter falls under a schedule five offence and one suspect is yet to be arrested.
“He lives in Hermanus and the State will bring an application for accused number 4 to be added to the charge sheet at a later stage,” said prosecutor Tjaart van Zyl.
Defence attor ney Danie Gouws read out affidavits from his clients. Watson, Gerwel and Wessels indicated in their affidavits they intended to plead not guilty to the charges. Watson later told reporters that the charges against him were “malicious”.
“I believe the charges are malicious and we will get to the bottom of this,” Watson said while leaving court with his lawyer.
The State alleges that all the accused acted “in common purpose”.
The case was postponed until May 3 for outstanding financial reports and for the arrest of the outstanding accused in Hermanus. – ANA