Charge sheet of shame

The inelegant charge sheet in the R5.985-million Mandela memorial fraud trial was the subject of heated argument in the East London regional court for most of last week by lawyers representing the remaining accused.

The case has already been finalised against taxi operator Mzwandile Sokwali, his wife Blanche Boti and their business, Victory Ticket – respectively accused one, two and three in the original charge sheet, for claiming the funds from Buffalo City Metro for ostensibly transporting mourners to various memorial services for former president Nelson Mandela.

Sokwali’s five-year prison term, wholly suspended for five years, and Victory Ticket’s effective fine of R50 000, were described in court last week by Advocate Laurence Hodes SC as “miniscule”.

The charge sheet runs to 78 pages and depends on the common purpose doctrine, linking all or some of the accused in committing offences in the weeks following Mandela’s death in December 2013.

Accused four, Phumlani Mkolo, 37, is the ANC regional secretary in Buffalo City. He faces two counts of fraud, with alternatively a count of theft and another of attempted theft. He also faces three counts of contravening the Prevention of Organised Crime Act (Poca) for money laundering. He is alleged to have:

•  Attended a meeting on December 6 2013, where he asked Sokwali for a quotation to ferry mourners to the memorial services;

Agreed with BCM municipal manager Andile Fani and acting finance manager Pillay that R10-million would suffice for Mandela memorial services;

Told Sokwali the ANC had allocated R10-million for taxi services and asked for an amended quote;

Called Sokwali to a meeting at BCM on December 9 where it was agreed Sokwali would submit invoices based on a revised quote and once paid by BCM, would distribute money into various other accounts;

Gone with Sokwali to BCM’s procurement section to ensure Victory Ticket was included on the municipality’s supplier database;

Submitted a document fraudulently misrepresenting to the BCM that Victory Ticket was entitled to receive payment on December 13 of R5.985-million for transportation of the mourners; and

Submitted documents to BCM for payment on January 20 of an additional R3.013-million to Victory Ticket. This payment was stopped.

Accused five is the executive mayor Zukiswa Ncitha, 58. She faces similar counts as Mkolo for fraud relating to the submission of documents for payment of the R5.985-million to Victory Ticket and the later payment of R3.013-million which was stopped. She also faces one count of money laundering and another of interfering in the police investigation. The state alleges she:

•  Received an e-mail from National Treasury on December 6 2013, which stipulated BCM was only authorised to spend money on transport for mourners and not on catering, tents, commemorative advertising or T-shirts;

Asked municipal manager Andile Fani and the acting finance manager Vincent Pillay to secure R15-million from BCM budget for provincial memorial services;

Presented a false report to a BCM council meeting on December 11 2013, that provincial government requested funding for citizens to be transported to memorial service venues. Council approved a resolution based on her presentation;

Knew the provincial state had already mandated East Cape Development Corporation to manage memorial services; and

Interfered with the investigation by Hawks investigator Captain Luphumlo Lwana on February 11 2014.

Accused six is the executive deputy mayor of BCM Themba Tinta, 40. He allegedly signed the report which Ncitha presented to a BCM council meeting on December 11 2013, seeking approval for the spending of R10-million on transportation of the public to memorial services. He faces two counts of fraud and one count of money laundering under Poca.

Accused seven is Ondela Mahlangu, 49, the acting director for executive support in the office of the executive mayor of BCM.

She is charged with failing to report her knowledge or suspicion about fraudulent activities. She also faces the same counts of fraud as the other accused on the main allegations surrounding Victory Ticket, and one count of money laundering. She allegedly informed the meeting of December 9 at BCM about the National Treasury directive. She also allegedly approved the payments to Victory Ticket after invoices were submitted.

Accused eight is BCM council speaker Luleka Simon-Ndzele, 49. She attended the meeting at BCM on December 9 and presided at the council meeting of December 11 where approval was sought and granted for spending R10-million on Mandela memorial services based on a report presented by Ncitha. She faces two counts of fraud and two counts under Poca relating to money laundering and corrupt activities – the latter for asking Sokwali to pay for councillor Sindiswa Gomba to travel to the provincial Mandela memorial service in Port Elizabeth at the expense of Victory Ticket.

Gomba, 56, is accused nine. She faces the same charges on the same allegations as Simon-Ndzele.

Accused 10 is business woman Viwe Vazi, 40, the sole member of Forty Wings Lodge cc which received money from Victory Ticket for catering. She faces one count under Poca for not reporting her knowledge or suspicions of fraud.

Accused 11 is Forty Wings Lodge cc, which is charged with two counts of fraud and one of money laundering. Of the R5.985-million paid to Victory Ticket, some R899000 allegedly was paid into the bank account of Forty Wings on December 17.

Accused 12 is Mantella Trading 522 cc trading as Designer Lighting. However, there is no charge listed against the business, although it is alleged that on December 17, R1.380-million was transferred from Victory Ticket into Mantella’s bank account.

Accused 13 is businessman Dean Fanoe, 44, who owns 65% of the members’ interest in Mantella Trading 522. He is charged under Poca for failing to report his knowledge or suspicion of the fraudulent actions of the other accused.

Accused 14 is Gauteng-based attorney Zintle Nkuhlu, 38, reportedly the current girlfriend of Mkolo. She faces one count of money laundering after R350000 was transferred into the bank account of the Lily Rose Trust, of which she is a trustee. Fellow trustee Sibongile Luthuli has not been charged.

Accused 15 is Nosiphiwo Mati, 39, reportedly Mkolo’s ex-girlfriend. She faces one count under Poca for not reporting her knowledge or suspicion of fraud. On the main count she is the only accused, but on the second alternative to this count, seven other accused have been charged.

Accused 16 is Mpido’s Emergency and Training Services cc, of which Mati is the sole member. It has been charged with two counts of money laundering after two amounts of R50000 each were paid into its bank account on December 21 2013. — rayh@dispatch.co.za