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- The Asset Forfeiture Unit has been granted a final forfeiture order to seize assets belonging to Durban businessman and CPA Poovandaren Chetty.
- In September 2018, the Superior Court granted a preservation order to the AFU.
- While on bail, one of Chetty’s co-defendants, Stanley Khanyile, was shot and killed in early October at Alberton in Gauteng.
The Asset Forfeiture Unit of the National Prosecution Authority received a final confiscation order from the Eastern Cape Superior Court to seize assets belonging to Durban businessman Poovandaren Chetty.
The assets were purchased using bidding money allegedly acquired fraudulently from the Eastern Cape social development department in 2015.
The final forfeiture order, granted by the Eastern Cape High Court in Makhanda on Tuesday, ordered assets worth R19 million to be seized that were the product of alleged bid fraud.
Chetty, former head of the social development department in the Eastern Cape, Stanley Khanyile, former chief director of Khanyile’s office, defender Vuyokazi Sangoni, were arrested by the Hawks Anti-Corruption Unit for fraud, theft and money laundering worth more than R29 million.
In September 2018, the Superior Court granted a preservation order to the AFU. NPA spokesman Sipho Ngwema said Tuesday that the court permanently seized the following property from the state:
• credit balance R12 177 771.26 contained in the account, number 746 974 062 36 in the name of Umnotho Training and Development Trust;
• A Porsche 911 with registration number NJ439;
• Capital of R101,000 in Land Rover Discovery with registration number ND 285;
• 52 Kruger Rand gold coins;
• Erf No 51 Wedgewood Old Cape Road, Port Elizabeth;
• Renovations worth R1 045 649.60 at the property at 40 Swapo Road, Durban North, KwaZulu Natal;
• R2 000 000 and its interest and / or capital increase and dividends transferred from the Umnotho Training and Development account, FNB account number 62547679285 and Allan Gray investment account invested, number 62083093311 maintained in FNB, general ledger account number AGLP565468; Y
• R500 000 and its interest and / or capital increase and dividends transferred from the Umnotho Training and Development account, FNB account number 62547679285 and invested in Bitcoin invested in the company Luno Bitcoin, FNB account number 62412967484.
Khanyile, Sangoni and Chetty received bail of R50,000, R20,000 and R200,000 from the King William’s Town Magistrates Court on August 14, respectively.
While on bail, Khanyile was shot and killed in early October at Alberton in Gauteng. He faced two counts of fraud and two counts of violation of the Public Finance Management Act.
Sangoni was charged with one count of fraud and Chetty faced 16 counts of fraud, 18 counts of theft and 15 counts of money laundering.
The criminal case was postponed until 20 November 2020 for the State to file a new indictment and the matter to be referred to the East London High Court for trial.
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Sangoni revealed to News24 in court that she was the sister of presidential spokesperson Khusela Diko and the niece of the retired president of the Eastern Cape judge, Themba Sangoni.
The state prosecutor, Antoinette De Jager, had told the trial court that once the case was transferred to the High Court, the state would collect that the 29 million rand was diverted from a budget of 42 million rand earmarked for the construction of a building during the financial period 2015-2016. year.
Providing background on the alleged fraud, Ngwema said in 2015 that the Eastern Cape Department of Social Development was going to establish a provincial resource center for women’s development in Lusikisiki.
The center was intended to serve as a center for the socio-economic empowerment of women with a focus on skills development programs. It was also intended to be a provincial center for the marketing of products made by cooperatives or women’s groups funded by the department.
The department identified an existing government infrastructure in Lusikisiki as a suitable location to house the development resource center.
Khanyile was alleged to have breached the procurement processes for the benefit of Chetty for a R14.5 million contract for the establishment of the development resource center, Ngwema said.
Ngwema said that Khanyile was alleged to have bypassed the procurement processes and in July 2015 signed a Service Level Agreement (SLA) with Chetty.
The deal was supposed to have started in April 2015 and ran for nine months until December 2015.
“It is alleged that before the contract was signed, Chetty did not submit any business plan on behalf of Umnotho to the ECDSD, which was a requirement for funding in terms of the department’s policy to award financially to service providers,” Ngwema said.
Ngwema added that between July and August 2015, the department paid just over R14 million to Umnotho, a private company owned by Chetty, and he was the only designated signatory to his bank account.
For the 2016/2017 financial year, the department called a competition for the formation and training of cooperatives.
“Khanyile and Sangoni are accused of conspiring to ensure that Umnotho won the tender through an unfair advantage in the procurement process. They allegedly disobeyed the prescribed procurement policy and did not follow normal departmental practices. Umnotho received the tender properly,” he said Ngwema.
In May 2016, Khanyile and Chetty reportedly signed a second SLA. This deal was considered to have started in May 2016 and was to last until the end of March 2017. The ECDSD paid just over R15 million to Umnotho, Ngwema said.
According to Ngwema, Chetty allegedly misused approximately R14 million from Umnotho’s account for his personal gain. It is alleged that during August and September 2015 he purchased a Rolex watch, a diamond ring, a Porsche, a Ferrari and gold coins valued at just over 1 million rand.
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