THE Hawks are investigating claims of a complicated scheme allegedly used by education boss Mthunywa Ngonzo bribes and kickbacks from companies doing business with his department.
Investigators from the elite crime-fighting unit are investigating two companies which had contracts with the education department and allegedly gave more than R1-million worth of gifts and cash to Ngonzo.
The transaction is alleged to have happened while the companies were waiting for the department to award a multi-million rand school furniture tender.
One of the companies allegedly bought Ngonzo a new Audi A5 worth R460000 a few days after he received his letter of appointment as head of department last year.
The other allegedly paid about R1.2-million towards his Vincent home – which he bought for R2.5-million late last year.
The revelations are contained in a Hawks report and forms part of the unit’s investigation into a R46-million tender to supply thousands of provincial schools with furniture.
The investigation was launched after the provincial treasury opened a case with the Zwelitsha police earlier this year following a forensic audit by auditing firm SizweNtsalubaGobodo.
The audit report was forwarded to treasury and the Hawks for criminal investigation and Ngonzo was later based on the investigation’s preliminary findings.
This week Ngonzo denied any impropriety in his transaction.
The department declined to comment, but in July a department spokesman confirmed that Ngonzo was the subject of an investigation.
“The case is sub judice, and we appeal to everyone to allow the department space and time to finalise the investigation. Ngonzo remains head of the department until the investigation is finalised,” the spokesman, Mali Mtima, said at the time.
Hawks spokesman Captain Paul Ramaloko confirmed the investigation but would not discuss the case against Ngonzo.
“ involves the breach of tender processes in the awarding of the R46-million contracts. We can only name people when we have made arrests,” Ramoloko said.
But the Dispatch has seen a report by a Hawks investigator which details how Ngonzo acquired his Western Avenue, Vincent, home and a new luxury German sedan last year.
The report documents a complicated scheme involving a number of companies and people close to Ngonzo.
It shows that on February 12, R1.2-million was transferred from a company, Masizakhebothani, who are service providers to the education department, to Smith Tabata Inc attorneys.
The law firm transferred the same amount to Gravett Schoeman Attorneys, who were attending to the conveyancing of erf 9076 (Western Avenue Vincent) in East London on behalf of Ngonzo.
Mike Smith of Smith Tabata Inc confirmed the transaction but refused to discuss it further.
The car was bought from the Audi Centre in East London by Phumza Mlakalaka with cash, and later registered in Ngonzo’s name.
A few months later he traded it in for R365000 and the money was transferred to the bank account of Ngonzo Trust.
Mlakalaka is married to Linda Koza, who is a business partner with Ngonzo in a company currently in de-registration process.
The Dispatch understands that Koza is also a long-time friend of Ngonzo.
Koza is a partner – in another business venture – to one of the directors of Milani Furnitures, which was one of 14 companies awarded contracts last year to supply and deliver school furniture.
The contracts were worth R46-million and Milani Furnitures was paid R7.9-million.
The investigators believe the money, which Mlakalaka used to buy the car, came from Milani Furnitures via her husband. But Mthunzi Deliwe, of Milani Furnitures, disputed this.
He confirmed being interviewed by the Hawks investigators, and said he had told them everything he knew.
“It is just jealousy. We were awarded the tender through the correct processes,” Deliwe said.
Deliwe confirmed he had a “business relationship” with Koza.
While the Hawks report notes that Ngonzo had declared his business relationship with Koza, he did not disclose that Koza was married to Mlakalaka.
“He also did not disclose that at the time of his submission of the said disclosure forms he has already received gift in the form of Audi A5.
“This failure to disclose by Ngonzo is not a surprise, as it is consistent with his pattern of acquiring assets through complicated schemes.
“This is clear money laundering activity in order to disguise originality of his sources of income,” the report alleges.
Koza refused to comment when contacted yesterday.
Ngonzo this week said all his transactions had been above board.
Asked to explain the luxury car gift and why one of the department’s suppliers paid towards this house, he refused to discuss the matter further.
“There is no transaction with me that has ever been improper. If there is any other legal process that needs to be followed let it be followed.
“The increasingly baseless insinuations of impropriety in my private conduct are deliberate and malicious, meant to cast aspersions on my character and standing in the community,” he said. — mphumziz@dispatch.co.za
Hawks track gift trail
Investigators from the elite crime-fighting unit are investigating two companies which had contracts with the education department and allegedly gave more than R1-million worth of gifts and cash to Ngonzo.
The transaction is alleged to have happened while the companies were waiting for the department to award a multi-million rand school furniture tender.
One of the companies allegedly bought Ngonzo a new Audi A5 worth R460000 a few days after he received his letter of appointment as head of department last year.
The other allegedly paid about R1.2-million towards his Vincent home – which he bought for R2.5-million late last year.
The revelations are contained in a Hawks report and forms part of the unit’s investigation into a R46-million tender to supply thousands of provincial schools with furniture.
The investigation was launched after the provincial treasury opened a case with the Zwelitsha police earlier this year following a forensic audit by auditing firm SizweNtsalubaGobodo.
The audit report was forwarded to treasury and the Hawks for criminal investigation and Ngonzo was later based on the investigation’s preliminary findings.
This week Ngonzo denied any impropriety in his transaction.
The department declined to comment, but in July a department spokesman confirmed that Ngonzo was the subject of an investigation.
“The case is sub judice, and we appeal to everyone to allow the department space and time to finalise the investigation. Ngonzo remains head of the department until the investigation is finalised,” the spokesman, Mali Mtima, said at the time.
Hawks spokesman Captain Paul Ramaloko confirmed the investigation but would not discuss the case against Ngonzo.
“ involves the breach of tender processes in the awarding of the R46-million contracts. We can only name people when we have made arrests,” Ramoloko said.
But the Dispatch has seen a report by a Hawks investigator which details how Ngonzo acquired his Western Avenue, Vincent, home and a new luxury German sedan last year.
The report documents a complicated scheme involving a number of companies and people close to Ngonzo.
It shows that on February 12, R1.2-million was transferred from a company, Masizakhebothani, who are service providers to the education department, to Smith Tabata Inc attorneys.
The law firm transferred the same amount to Gravett Schoeman Attorneys, who were attending to the conveyancing of erf 9076 (Western Avenue Vincent) in East London on behalf of Ngonzo.
Mike Smith of Smith Tabata Inc confirmed the transaction but refused to discuss it further.
The car was bought from the Audi Centre in East London by Phumza Mlakalaka with cash, and later registered in Ngonzo’s name.
A few months later he traded it in for R365000 and the money was transferred to the bank account of Ngonzo Trust.
Mlakalaka is married to Linda Koza, who is a business partner with Ngonzo in a company currently in de-registration process.
The Dispatch understands that Koza is also a long-time friend of Ngonzo.
Koza is a partner – in another business venture – to one of the directors of Milani Furnitures, which was one of 14 companies awarded contracts last year to supply and deliver school furniture.
The contracts were worth R46-million and Milani Furnitures was paid R7.9-million.
The investigators believe the money, which Mlakalaka used to buy the car, came from Milani Furnitures via her husband. But Mthunzi Deliwe, of Milani Furnitures, disputed this.
He confirmed being interviewed by the Hawks investigators, and said he had told them everything he knew.
“It is just jealousy. We were awarded the tender through the correct processes,” Deliwe said.
Deliwe confirmed he had a “business relationship” with Koza.
While the Hawks report notes that Ngonzo had declared his business relationship with Koza, he did not disclose that Koza was married to Mlakalaka.
“He also did not disclose that at the time of his submission of the said disclosure forms he has already received gift in the form of Audi A5.
“This failure to disclose by Ngonzo is not a surprise, as it is consistent with his pattern of acquiring assets through complicated schemes.
“This is clear money laundering activity in order to disguise originality of his sources of income,” the report alleges.
Koza refused to comment when contacted yesterday.
Ngonzo this week said all his transactions had been above board.
Asked to explain the luxury car gift and why one of the department’s suppliers paid towards this house, he refused to discuss the matter further.
“There is no transaction with me that has ever been improper. If there is any other legal process that needs to be followed let it be followed.
“The increasingly baseless insinuations of impropriety in my private conduct are deliberate and malicious, meant to cast aspersions on my character and standing in the community,” he said. — mphumziz@dispatch.co.za
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