A Porsche, Ferrari, a Rolex watch and a diamond ring. These are some of the fancy items bought in a luxury shopping spree with taxpayers' money meant to empower rural women in the Eastern Cape.
This is a case involving R29m siphoned from the Eastern Cape department of social development in 2015 and 2016, which prosecutors in the district court in King William's Town will be arguing in two weeks.
The former Eastern Cape's social development department head Stanley Khanyile, who died in a hail of bullets on Saturday, was expected in court on October 16 together with Durban businessman Poovandaren Chetty and former chief director of the department, Vuyokazi Sangoni, to answer to the case.
Khanyile, the Sedibeng district municipal manager at the time of his death, was shot in broad daylight while sitting in his car in a shopping centre at the up-market Meyersdal in Alberton, south of Johannesburg, according to police.
National Prosecuting Authority's Eastern Cape spokesperson Anelisa Ngcakani told Sowetan yesterday the death of Khanyile would not affect the case as it would proceed as scheduled.
The indictment before the King William's Town court, which Sowetan has seen, alleges that Khanyile used his position as the head of the department to bypass procurement processes and ensured that in excess of R29m was paid to a company owned by Chetty in two dodgy deals.
It does not, however, indicate what Khanyile benefitted from the two contracts awarded to Chetty's Umnotho Training and Development Consultants, with agreements signed on July 15 2015 and May 3 2016.
The bulk of the money was used, allegedly by Chetty, to purchase items such as gold coins and Bitcoins among others, while the references used on the company's bank statements showed something totally different.
According to the indictment, after two tranches of R7.2m each were paid on July 29 2015 and on August 26 2015, there was a subsequent spending spree.
On August 21, R400,000 was spent on a purchase of a Rolex watch and 1 carat diamond ring, while barely a week later R624,995 was used as a part payment for a Porsche 911 Carrera.
The reference used on the company's bank statement for the Porsche payment was "Women for Women DSD Vka", according to the indictment.
Five days later, R327,208 was paid towards a Ferrari with another R435,000 used to buy 23 gold coins on November 16 under reference "Training Pbr School Tcsg".
In another instance, "Sewing Equipment" was used as reference while the actual spending was on renovating the company's offices. "Bakery Deposit" and "Training Stationery" were used as references for a R100,000 purchase of another Rolex watch and buying gold coins.
Khanyile allegedly had ensured that some of what was supposed to be a R42-million contract with the National Development Agency went to Umnotho Training and Development Consultants without following supply chain processes.
He initially entered into a R14.2m nine month contract, which would empower women through skills development and training.
Khanyile had allegedly strong-armed his colleagues who asked questions about why the contract was not put to tender. He allegedly pushed for the appointment of Umnotho, saying he would respond to any queries about the contract.
The company entered into a service level agreement with the department on July 15, 2015, while the agreement was deemed to have commenced on 1 April.
Umnotho was paid a total of R14.4m despite the provincial treasury having rejected a deviation application that was signed by Khanyile, who allegedly back-dated his signature to July 9.
The letter rejecting the deviation Khanyile tried to get, was received by the department on August 11, 2015 almost two weeks after the department had paid the first R7.2m tranche.
"The fact that Treasury did not condone the deviation should have resulted in the cancellation of the first Service Level Agreement and (Khanyile) should have initiated a competitive bidding process for the contract. He failed to do so," the indictment stated.
The document alleges that Khanyile, however, pushed and "exerted pressure on the officials" in the department to effect payment of the second R7.2-million to Umnotho.
The second payment was made on August 26, despite Umnotho not having accounted for how it had spent the first payment.
Umnotho was also awarded another R15m contract, which was facilitated by Sangoni, who allegedly colluded with Chetty to draft tender specifications for the contract.
Khanyile had established a separate ad hoc bid evaluation committee to oversee the tender in May 2016.
The department had planned to roll out a Women Development Resource Centre, which would be a hub for socioeconomic empowerment focusing on skills development.
Asked for comment yesterday, Chetty said: “I obviously will not comment. I reserve my right not to comment because this is before the court.”
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