KZN AFU head placed in preventive suspension



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Justice Minister Ronald Lamola did not publicly disclose the reasons for putting Molelle on suspension, however reports suggested he is linked to the state capture charges.

Knorx Molelle. Image: Bulelwa Makeke.

JOHANNESBURG – The National Tax Authority (NPA) has placed the head of the KwaZulu-Natal Asset Forfeiture Unit (AFU), Knorx Molelle, on preventive suspension.

Justice Minister Ronald Lamola suspended Molelle with full pay this week.

“The matter is being dealt with internally and the NPA will release further details at an appropriate time once the internal issues have been exhausted,” said NPA spokesman Sipho Ngwema.

Molelle’s suspension on allegations that he irregularly and unnecessarily appointed and paid curators was causing divisions at the NPA, with some of his colleagues calling the claims absurd.

Some NPA officials said that not only are conservators appointed by the Superior Court Master, but neither Molelle nor anyone at the NPA has a say over their fees.

In a letter, Lamola said the allegations of wrongdoing related to the appointment of curators in the Mckinsey, Estina and Intaka affairs, and the minister said he took them seriously.

Eskom paid Mckinsey 1 billion rand in consulting fees, while Trillian was paid 600 million rand to secure the business, and when the NPA began investigating, both companies indicated that they would return the money voluntarily.

However, some NPA officials dismissed claims that the conservators were appointed after Mckinsey and Trillian had paid the money, instead maintaining that the money would never be paid if the court had not intervened.

According to officials who agreed to speak to Eyewitness News, on condition of anonymity, the allegations came from a whistleblower who was linked to a law firm advising Eskom at the time.

Sources claimed there was an attempt to block the AFU when it began investigating the matter in the hope that a deal could be reached with Mckinsey and Trillian to get the money back.

But months passed and it was only when Molelle and his team successfully argued for a court order to seize their assets that the money was paid.

Justice Department spokesman Crispin Phiri said Lamola approved the stay because he was convinced Molelle should step aside to allow the investigations to conclude.

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