Mandela memorial fraud accused hand over millions to state

MORE than R4.1m has been handed over to the Asset Forfeiture Unit by individuals accused of illicitly benefiting from funds meant for Nelson Mandela’s memorial services.

The money was forfeited to the state. The amount accounts for a major portion of the nearly R6m shelled out by Buffalo City municipality last year for the events.

Investigation of the payments led to a series of arrests recently, including of some of the metro’s leaders.

Those allegedly involved are facing fraud, corruption, theft and money-laundering charges relating to the payments. A provisional date for a three-week trial was set for April next year.

The state alleges that more than R5.9m was illicitly disbursed by, or to, the accused.

Three weeks ago, the High Court in Grahamstown froze the bank accounts of separate businesses belonging to Mzwandile Sokwali and his wife, Busisiwe Boti, Dean Fanoe, Viwe Vazi, and an account controlled by attorney Zintle Nkuhlu.

Mayor Zukiswa Ncitha, deputy mayor Temba Tinta, council speaker Luleka Simon-Ndzele, senior councillor Sindiswa Gomba, African National Congress regional secretary Phumlani Mkolo and the director in the office of the mayor, Ondela Mahlangu, also had their bank accounts frozen.

Some of the business owners volunteered to repay the money they were accused of receiving illicitly, so their accounts could be unfrozen.

National Prosecuting Authority spokesman Nathi Mncube said Judge Jeremy Pickering granted the Asset Forfeiture Unit a forfeiture order for R4.172m.

The money would be deposited into the criminal assets recovery account and be used to bolster law enforcement.

Ms Vazi had repaid R899,000, and Mr Fanoe R1.3m.

“(Mr Sokwali) and Ms Boti repaid R1.9m distributed to (companies) Sizisa Ukhanyo and to Victory Ticket,” Mr Mncube said.

“The tender process followed was rigged,” he said. The city council had made a resolution to disburse R10m on the basis of alleged unlawful misrepresentations by Ms Ncitha.

She allegedly misled the council into believing that the provincial government had agreed that the municipality would fund the events.