Senior govt officials, businessman in court for alleged fraud, theft of R29 million

The former head of the Eastern Cape Department of Social Development (ECDSD), Stanley Khanyile, then Chief Director in the office of HOD, Vuyokazi Valentia Sangoni and the Director of Umnotho Development, Poovandaren Chetty, appeared at the King William’s Town Magistrate Court today in connection with contravening the Public Finance Management Act, fraud, theft and money laundering which involves just over R29 million.

Magistrate Nkosinathi Mjekula granted Chetty R200,000 bail, R50,000 for Khanyile, while Sangoni was granted bail for R20,000.

The three were arrested by the Anti-Corruption Taskteam yesterday. Khanyile and Chetty were arrested in Gauteng while Sangoni was arrested in East London.

Khanyile has been charged with two counts of contravention the PFMA and two counts of fraud, one count of fraud for Sangoni, while Chetty faces 16 counts of fraud, 18 counts of theft, and 15 counts of money laundering.

Khanyile, in his capacity as the HOD in 2015, allegedly flouted procurement prescriptions and processes to ensure that Chetty was awarded a contract of just over R14 million to establish a Provincial Women’s Development Resource Centre in Lusikisiki.

The Centre was intended to serve as a hub for socio-economic empowerment for women with a focus on skills development programs. It was also intended to be a provincial hub for marketing the products produced by women co-operatives or groups which were funded by the department.

Chetty allegedly misused approximately R14 million for his personal benefit in that during August and September
2015 he allegedly bought a Rolex watch, a diamond ring, Porsche and Ferrari motor vehicles and gold coins valued at just over R1 million.

The prosecutor, Senior State Advocate, Antoinette De Jager said even though the state did not oppose bail, considering the seriousness of the charges, they requested for stringent bail conditions.

“The accused must report at police stations and they must hand in their passports to the investigating officer,” she said.

Judge Mjekula ordered that the accused report at their nearest police stations, to hand in their passports and to ask for permission from the investigating officer in relation to traveling outside the provinces where they reside.

Their next court appearance at the same court will be on 16 October.

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