Details of how two friends allegedly siphoned millions of rands from the Integrated Public Transport System (IPTS) emerged yesterday after the Hawks swooped on former EP Rugby president Cheeky Watson, a taxi boss, a municipal official and an events company director.
The arrests follow a six-month long probe into alleged corrupt activities around the R208-million which National Treasury set aside for the improvement of public transport in Nelson Mandela Bay.
Watson, 62, assistant director in the metro’s finance department, Nadia Gerwel, 51, Zeranza director Andrea Wessels, 40, and former director of Laphumilanga Transport Services, Mandisi Mkasa, 55, handed themselves over at the Mount Road police station at 7am yesterday.
From there they appeared in the Port Elizabeth Magistrate’s Court where they were each released on R2000 bail. They face charges of fraud and money laundering, with Wessels facing an additional charge of forgery.
Then chief executive of Access Facilities and Leisure Management, Stephen Pretorius, is cited on the charge sheet as the fourth accused.
Referring to him only as “accused number four”, state advocate Tjaart van Zyl said he was aware of the criminal matter but was living in Hermanus and could not be in court on such short notice.
The accused and their defence attorney, Danie Gouws, were notified of their arrests on Thursday night and agreed to hand themselves over to the police the following morning.
Gouws told the court his clients had been aware of the matter for a long time and had cooperated with police.
They would all plead not guilty to the charges.
Upset with the media, who had crowded the police station, and later the court, Gouws asked that an order be made that no photographs be taken while the court was in session. After first quipping “are there any children in court”, magistrate Sanjani Naidoo complied, but said she had no control of photographs being taken outside the court building.
The state allege Wessels and Gerwel conspired or acted in common purpose to defraud the metro to unlawfully use IPTS funds.
It is alleged Gerwel and Wessels used an events management company, ESP, to launder the money, but when that was no longer viable, they turned to Access, and thereafter, EP Rugby.
The IPTS was initiated in the short-term to provide public transport during the 2010 Soccer World Cup, and in the long-term to provide “world-class” transport in the city.
The Nelson Mandela Bay Municipality (NMBM) had applied for a conditional grant offered by government, and in 2005, National Treasury issued the first amount.
By January 2015, the Metro had received almost R208-million.
Yesterday, Van Zyl said an auditor’s report from Deloitte was still outstanding and asked that the matter be postponed to May 3 for further investigation. As part of their bail conditions, the court ordered the accused to hand over their passports by 4pm yesterday.
Cheeky, 2 others on bail in R200m alleged fraud case
The arrests follow a six-month long probe into alleged corrupt activities around the R208-million which National Treasury set aside for the improvement of public transport in Nelson Mandela Bay.
Watson, 62, assistant director in the metro’s finance department, Nadia Gerwel, 51, Zeranza director Andrea Wessels, 40, and former director of Laphumilanga Transport Services, Mandisi Mkasa, 55, handed themselves over at the Mount Road police station at 7am yesterday.
From there they appeared in the Port Elizabeth Magistrate’s Court where they were each released on R2000 bail. They face charges of fraud and money laundering, with Wessels facing an additional charge of forgery.
Then chief executive of Access Facilities and Leisure Management, Stephen Pretorius, is cited on the charge sheet as the fourth accused.
Referring to him only as “accused number four”, state advocate Tjaart van Zyl said he was aware of the criminal matter but was living in Hermanus and could not be in court on such short notice.
The accused and their defence attorney, Danie Gouws, were notified of their arrests on Thursday night and agreed to hand themselves over to the police the following morning.
Gouws told the court his clients had been aware of the matter for a long time and had cooperated with police.
They would all plead not guilty to the charges.
Upset with the media, who had crowded the police station, and later the court, Gouws asked that an order be made that no photographs be taken while the court was in session. After first quipping “are there any children in court”, magistrate Sanjani Naidoo complied, but said she had no control of photographs being taken outside the court building.
The state allege Wessels and Gerwel conspired or acted in common purpose to defraud the metro to unlawfully use IPTS funds.
It is alleged Gerwel and Wessels used an events management company, ESP, to launder the money, but when that was no longer viable, they turned to Access, and thereafter, EP Rugby.
The IPTS was initiated in the short-term to provide public transport during the 2010 Soccer World Cup, and in the long-term to provide “world-class” transport in the city.
The Nelson Mandela Bay Municipality (NMBM) had applied for a conditional grant offered by government, and in 2005, National Treasury issued the first amount.
By January 2015, the Metro had received almost R208-million.
Yesterday, Van Zyl said an auditor’s report from Deloitte was still outstanding and asked that the matter be postponed to May 3 for further investigation. As part of their bail conditions, the court ordered the accused to hand over their passports by 4pm yesterday.
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending Now
Latest Videos