How state connected the dots in IPTS case
An investigation initiated by the National Treasury into how much had been paid to the Nelson Mandela Bay municipality for the implementation of the Integrated Public Transport System (IPTS) is what led to forensic investigators uncovering an alleged scheme by high-ranking officials, municipal employees and businesspeople.
Testifying on behalf of the state, former associate director of auditing firm Deloitte, Burt Botha, who was mandated to do the initial investigation in November 2014, told the Gqeberha high court it was after submitting a preliminary report to the National Treasury that the mandate was extended to establish if municipal employees had irregularly benefited from the funds.
According to Botha, further information was obtained through various channels during 2015, including from the Hawks, which formed part of the criminal case.
Names revealed following the 2015 investigation included disgraced businesswoman Andrea Wessels, her son Rukaard Abrahams, former metro head of infrastructure and engineering Walter Shaidi, Bay attorney David le Roux, his business Le Roux Inc, businessman Fareed Fakir, former assistant director in the metro’s budget and treasury department Nadia Gerwel, Mhleli Tshamase, who was initially in charge of the IPTS projects, axed Bay deputy mayor and former ANC MPL Chippa Ngcolomba, and former Bay ANC regional secretary Zandisile Qupe.
Last month, those flagged in the report pleaded not guilty to 16 counts of fraud, two of racketeering, 59 of money laundering, 53 of corruption, two of contravening the Criminal Procedure Act (CPA) for supplying false information, two of contravening the CPA for impeding an accounting officer, and five counts of contravening the CPA by failing to report suspicious or unusual transactions.
Botha said as head of the investigation into the missing IPTS money, he was assisted by four other employees, including Dries Breytenbach, who has since left Deloitte and joined Danie Gouws Attorneys.
Breytenbach is assisting Gouws, who is representing Gerwel, Tshamase, Fakir, Qupe and Ngcolomba.
After Botha made the surprising revelation, Gouws promptly informed the court that permission had been granted for Breytenbach to assist him.
“[Breytenbach] can assist and though an admitted attorney in the high court, he may not appear [on behalf of the accused],” Gouws said.
Before court proceedings began, Gouws raised an objection to Botha reading into the record his 144-page affidavit compiled using various other reports.
Gouws said his clients would be at a disadvantage should Botha be allowed to read his affidavit as the state was required to lead evidence for the defence to test.
After hearing arguments from state advocate Willie Kingsley, who said allowing Botha to read his affidavit would expedite proceedings, judge Phillip Zilwa said he agreed and ordered the matter to continue.
It is alleged that between August 2013 and May 2015, the accused, including late former mayor Mongameli Bobani, colluded to use money given to the metro by the National Treasury to line their own pockets using an illegal enterprise.
They were arrested in November 2020 and released on bail.
According to the state, the illegal enterprise was established using now defunct companies registered in the names of Fakir, Wessels and Abrahams, to make sure the procurement processes of the metro, as well as its department’s system of financial and internal controls, were captured in an irregular manner by using a seemingly legitimate approach.
The trial continues.