Former JB Marks mayor’s fraud trial postponed due to ill-health

The Potchefstroom Regional Court has postponed the fraud and corruption trial against the former Executive Mayor of JB Marks Local Municipality Kgotso Khumalo due to his ill-health.

The matter against Khumalo and two others is now scheduled to be heard on 07 April, after a medical certificate was submitted to the prosecutor as proof of his inability to attend the trial.

They are facing eight charges of theft and fraud from the municipal funds.

The trio who have pleaded not guilty to the charges and are out on a warning, have been cautioned not to interfere with state witnesses.

North West National Prosecuting Authority (NPA) spokesperson Henry Mamothame said it was alleged that the North West University and the Programme for Community Development paid millions into a trust account belonging to Willem Coetzee’s law firm for the use of specific projects by the municipality.

Mamothame said Coetzee was then given instructions to effect various payments, including a R208 000 mayoral committee contribution, towards the funeral of the late MEC for Agriculture, Duma Ndleleni, who passed away on 23 November 2018.

He said on 12 October last year, the state-led its evidence in chief by its key witness, Coetzee from Willem Coetzee Attorneys appointed by the JB Marks Local Municipality to manage its legal and financial mandates through a trust fund. 

Mamothame said Coetzee testified on how Khumalo instructed him, as the acting chairperson of the panel, to make payments in several accounts on different occasions.

“He told the court he was also instructed to pay two amounts of R35 000 to Kagisano Funerals, for the same funeral, which the funeral parlour alleges it was never received.

“A further R32 000 was allegedly paid to Roche Trading for a service rendered at the funeral. An amount of R210 000 was also highlighted as a form of payment to a law firm, Langford and Sons Projects (PTY) Ltd, for an Australian football tour that was undertaken by Henry.”

Mamothame said Coetzee also testified on how Khumalo instructed him to pay two Non-Governmental Organizations (NGOs) an amount of R50 000 each, which was a loan that will be paid back.

He said it was also discovered that R200 000 was paid directly into the account of one of the accused of which R64 218 was paid to an institution where Khumalo’s relative was a student

“He was later given a different account to which he transferred an amount of R100 000, instead of the R50 000 to each NGO. Coetzee told the court that he has since ceased being a member of the panel following investigations into this case.”

Mamothame said Coetzee is expected to undergo cross-examination from the defence team on his evidence when the trial commences.  

The state intends to call more witnesses to prove that false invoices were generated to effect more fictitious payments in the process of defrauding and stealing money meant for community development in the JB Marks Local Municipality.

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