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R29m Sedibeng Municipality Fraud & Money Laundering


Former Eastern Cape social development department head and current Sedibeng district municipality manager Stanley Khanyile, as well as two others, have been arrested by the Hawks in connection with a fraud, theft and money laundering case worth more than R29 million.


Stanley Khanyile, Durban businessman and chartered accountant Poovandaren Chetty, and former chief director of the department and advocate Vuyokazi Sangoni, appeared at the King William’s Town Magistrate’s Court on Friday.

Khanyile has been charged with two counts of contravening the Public Finance Management Act and two counts of fraud. Sangoni has been charged with one count of fraud, while Chetty faces 16 counts of fraud, 18 counts of theft, and 15 counts of money laundering.

State prosecutor Antoinette De Jager told the court that, when the case is transferred to the High Court, it would charge that the R29 million was siphoned from a budget earmarked for the construction of a resources development centre.

She said the State would charge that, without following normal procurement processes or involving a supply chain unit, Khanyile, then appointed Umnotho Development – a company owned by Chetty and a sum of R14.466 million was then paid.

De Jager said another amount of R15 million was paid to Chetty’s business again the following year after a tender for “training and capacitation”.

While it was not stated in court what Sangoni’s role was in the matter, her lawyer Tozama Mqobi told the court that her client was only implicated on one count of fraud. She is the sister of under-fire presidential spokesperson Khusela Diko and a niece of retired Eastern Cape judge president Themba Sangoni, she confirmed to News24.

All three were released on bail pending trial.



Source: https://citizen.co.za/news/south-africa/crime/2342212/hawks-nab-ec-municipal-manager-and-2-others-in-r29-million-fraud-case/

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