An East London court gave the first conviction in the Nelson Mandela memorial funding scandal yesterday and set the stage for dramatic testimony next year.
Sensational claims of deaths threats emerged from taxi businessman Mzwandile Sokwali, whose wife Busisiwe Boti was let off on all charges.
Sokwali and Boti were arrested early this year after their company, Victory Ticket 750cc, received R5.9-million from Buffalo City Metro, to transport mourners to various state services following Mandela’s death.
The Dispatch had uncovered evidence that showed much of the money was misspent. Following a series of news reports, Hawks investigators further arrested senior metro officials, among them mayor Zukisa Ncitha and council speaker Luleka Simon-Ndzele.
Yesterday, Sokwali – who pleaded guilty to fraud and money laundering – and his wife entered into a plea bargain with the state. East London magistrate Fezeka Monakali acquitted Boti and found Sokwali and their company, Victory Ticket, guilty.
“I find Victory Ticket guilty as charged and fine them R100000, with R50000 of it suspended. Also, is sentenced to five years in prison, which is wholly suspended for five years,” said Monakali.
Through his counsel advocate Terry Price SC, Sokwali told the court he was threatened with harm if he did not transfer the money as instructed by ANC regional secretary Phumlani Mkolo to a list of beneficiaries.
“ was informed that if he were not to pay all these monies over as requested, he would never again get any work from the municipality and he was also threatened unequivocally that he would be severely injured, if not murdered, if he did not transfer these monies as instructed by Mkolo.
“As a result, he transferred the monies,” said Price.
Mkolo, the court heard, pressured Sokwali to pay the service providers and sent him text messages with account numbers of people to be paid.
Sokwali admitted that his company gave councillor Sindiswa Gomba a lift to Port Elizabeth and put her up in an upmarket hotel. “This was reward for her support in passing illegal monies to the company regarding the Mandela memorials,” Price continued.
Despite the fact Sokwali was not on the database of suppliers, as required for municipal contracts, he was still given the tender.
Price alleged Mkolo intervened.
“(Mkolo) went to check if the accused was on the database at BCM Chiselhurst offices and there he met a Thembelani Sali who informed him that was not … but that would arrange that the accused meet Nqaba Ludidi, who assisted him to get onto the BCM database.”
Sali is the general manager of BCM’s supply chain and Ludidi is a coordinator in the same unit.
The court further heard that, although Sokwali was threatened and was scared for his life, he knew he could have reported the matter to the police.
He never did that and that made him guilty of the offences.
“It would appear that when the regional ANC secretary and all those who had unlawfully benefited from this entire project started panicking, they tried to force him to supply a comprehensive report setting out all the vehicles and the routes he used and the number of passengers conveyed in an attempt to persuade those that had now picked up the irregularities and the corruption that in fact this was a legitimate spend.
“The accused, under intense pressure, agreed to do so,” said Price.
Price said Sokwali did not involve himself in corrupt activities. “Initially, he believed that there was a genuine project designed to transport mourners to memorial services and he did what he was required to do, to wit, phoning transport companies in order to assist with the movement of mourners. He is a first offender and has never committed any offence prior to that day.”
Early this year Sokwali and Boti were arrested.
Their arrest was followed by the arrests of Ncitha, her deputy Temba Tinta, Simon-Ndzele and Gomba.
Also arrested was a director in the mayor’s office, Ondela Mahlangu, and Mkolo.
Other people arrested and accused of benefiting from the funds were Mantella Trading's Dean Fanoe, Forty Wings's Viwe Vazi, Mkolo's alleged girlfriend Zintle Nkuhlu of Lily Rose Trust and his ex-girlfriend Nosiphiwe Mati.
They all go on trial next year.
Mkolo could not be reached for comment by late last night.
Contacted yesterday, BCM municipal manager Andile Fani said he could not comment yet.
“I cannot comment yet. It would be naïve for me to comment at this stage.
“I still have to apply my mind on the conviction and know the terms and conditions,” he said.
The Dispatch reported last week that R4.1-million has already been returned to the state by some of the accused.
Taxi boss found guilty in Mandela funeral scam
Sensational claims of deaths threats emerged from taxi businessman Mzwandile Sokwali, whose wife Busisiwe Boti was let off on all charges.
Sokwali and Boti were arrested early this year after their company, Victory Ticket 750cc, received R5.9-million from Buffalo City Metro, to transport mourners to various state services following Mandela’s death.
The Dispatch had uncovered evidence that showed much of the money was misspent. Following a series of news reports, Hawks investigators further arrested senior metro officials, among them mayor Zukisa Ncitha and council speaker Luleka Simon-Ndzele.
Yesterday, Sokwali – who pleaded guilty to fraud and money laundering – and his wife entered into a plea bargain with the state. East London magistrate Fezeka Monakali acquitted Boti and found Sokwali and their company, Victory Ticket, guilty.
“I find Victory Ticket guilty as charged and fine them R100000, with R50000 of it suspended. Also, is sentenced to five years in prison, which is wholly suspended for five years,” said Monakali.
Through his counsel advocate Terry Price SC, Sokwali told the court he was threatened with harm if he did not transfer the money as instructed by ANC regional secretary Phumlani Mkolo to a list of beneficiaries.
“ was informed that if he were not to pay all these monies over as requested, he would never again get any work from the municipality and he was also threatened unequivocally that he would be severely injured, if not murdered, if he did not transfer these monies as instructed by Mkolo.
“As a result, he transferred the monies,” said Price.
Mkolo, the court heard, pressured Sokwali to pay the service providers and sent him text messages with account numbers of people to be paid.
Sokwali admitted that his company gave councillor Sindiswa Gomba a lift to Port Elizabeth and put her up in an upmarket hotel. “This was reward for her support in passing illegal monies to the company regarding the Mandela memorials,” Price continued.
Despite the fact Sokwali was not on the database of suppliers, as required for municipal contracts, he was still given the tender.
Price alleged Mkolo intervened.
“(Mkolo) went to check if the accused was on the database at BCM Chiselhurst offices and there he met a Thembelani Sali who informed him that was not … but that would arrange that the accused meet Nqaba Ludidi, who assisted him to get onto the BCM database.”
Sali is the general manager of BCM’s supply chain and Ludidi is a coordinator in the same unit.
The court further heard that, although Sokwali was threatened and was scared for his life, he knew he could have reported the matter to the police.
He never did that and that made him guilty of the offences.
“It would appear that when the regional ANC secretary and all those who had unlawfully benefited from this entire project started panicking, they tried to force him to supply a comprehensive report setting out all the vehicles and the routes he used and the number of passengers conveyed in an attempt to persuade those that had now picked up the irregularities and the corruption that in fact this was a legitimate spend.
“The accused, under intense pressure, agreed to do so,” said Price.
Price said Sokwali did not involve himself in corrupt activities. “Initially, he believed that there was a genuine project designed to transport mourners to memorial services and he did what he was required to do, to wit, phoning transport companies in order to assist with the movement of mourners. He is a first offender and has never committed any offence prior to that day.”
Early this year Sokwali and Boti were arrested.
Their arrest was followed by the arrests of Ncitha, her deputy Temba Tinta, Simon-Ndzele and Gomba.
Also arrested was a director in the mayor’s office, Ondela Mahlangu, and Mkolo.
Other people arrested and accused of benefiting from the funds were Mantella Trading's Dean Fanoe, Forty Wings's Viwe Vazi, Mkolo's alleged girlfriend Zintle Nkuhlu of Lily Rose Trust and his ex-girlfriend Nosiphiwe Mati.
They all go on trial next year.
Mkolo could not be reached for comment by late last night.
Contacted yesterday, BCM municipal manager Andile Fani said he could not comment yet.
“I cannot comment yet. It would be naïve for me to comment at this stage.
“I still have to apply my mind on the conviction and know the terms and conditions,” he said.
The Dispatch reported last week that R4.1-million has already been returned to the state by some of the accused.
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