State money was spent on drug- and alcohol-fuelled parties, gambling, cars and buying expensive properties.
In less than six months, two black senior Justice Department officials, allegedly together with five co-accused, swindled the department out of R3.2-million.
Lovelock Modiba, 41, a senior accountant, and Floyd Vumani, 36, were convicted on Friday of racketeering, money laundering and fraud and face being condemned to life behind bars.
The state is to apply for court authorisation to seize their assets, including 4×4 vehicles and homes.
Modiba and Vumani pleaded guilty to stealing the money between September 2012 and March 2013. On Friday, Modiba was convicted by Johannesburg magistrate Fehmida Hoosen on 48 counts and Vumani on seven counts.
In her judgment, Hoosen said the pair had shared the money equally, using it to support their families and splurging on alcohol and drugs.
Police close to the case said the two also gambled with some of the money.
The case of Modiba and Vumani’s five co-accused – three individuals and two close corporations – continues this month.
The group’s modus operandi involved transferring batches of money, ranging from R33894 to R342775, to either their personal bank accounts or to those of the two close corporations.
The close corporations allegedly involved in the scam were Knowledge and HR Footprint CC, and Purple Fly Trading CC, which were represented in the alleged scam by Tseop Mosadi and Zanele Taleni, respectively.
Both Mosadi and Taleni allegedly had control over the companies’ bank accounts.
They will be joined in the dock by Seroke Molefe, a senior manager in the Justice Department.
According to the charge sheet, as senior managers, Modiba and Molefe had access to the department’s accounting system and the bank account against which its operations’ expenses were drawn.
They allegedly registered Vumani, Mosadi and Taleni as service providers on the department’s database, apparently transferring R3.2-million in 23 transactions.
The charge sheet says the money made its way into personal and business accounts of the accused.
Payments were allegedly made under the pretext of services rendered, such as training of staff and provision of stationery, when no such services were provided.
Molefe and Modiba were accused of being the ringleaders in the plan to defraud the department “on an ongoing or continuous basis” and of recruiting the other accused, including Vumani, a junior in the department.
As time went on, the accused appeared to have become more brazen with regard to amounts allegedly illegally transferred.
In one day in January last year, Molefe and Modiba allegedly transferred more than R400000.
In March, shortly before the alleged scam was uncovered, more than R600000 was transferred.
Molefe, Modiba, Vumani, Mosadi and Taleni were arrested in June last year.
List of South African government corruption (so far)
1. Multi-billion $ Arm’s deal
3. Jacob Zuma’s Nkandla Homestead Project (Project Prestige)
4. Nkandla Freeway Project
5. Misuse of the plastic bag levy funds
6. Police Buildings and the exorbitant lease saga
8. Tony Yengeni’s arrest
9. Jackie Selebi and everything about the trial
10. Jackie Selebi’s parole
11. Shabir Schaik’s trial, during which Zuma was implicated but no prosecution followed
12. Schabir Shaik’s parole on medical grounds, but suddenly, he has fully recovered
13. Richard Mdluli’s slush fund
14. Richard Mdluli’s abuse of safe houses
15. Richard Mdluli’s travel agency scam
16. Richard Mdluli’s abuse of state owned vehicles
17. Manto Tshabalala-Msimang’s liver transplant
18. Nathi Mtethwa’s private residence upgrade with public funds
19. Julius Malema’s Limpopo feeding programme
20. Ntau Letebele’s transport tender in Limpopo
21. Julius Malema’s transport tender in Limpopo
22. School feeding schemes in the Eastern Cape
23. Ms Dina Pule and the ITC Indaba
24. Limpopo textbooks saga
25. Moses Kotane Development Agency corruption
26. Msunduzi municipality officials using more than R1m of taxpayers’ money to fund an ANC rally.
27. Mthatha corruption case over fraudulent legal jobs didn’t exist
28. Ekurhuleni municipality corruption in awarding water meter contracts to Lesira-Teq
29. Thaba Chweu local municipality’s misuse of R3m in 2009
30. Endemic corruption at Nala Local Municipality to the point that treasury have cut them off
31. Desiree Tlhoaele’s axing after going after corrupt officials in sports, arts and culture
32. Viking testing station’s corrupt examiners
33. Police officers Linda Mlambo and Mahlang Shaku fraudulenty conning motorists out of cash
34. Sandton officers arrested for corruption after extorting money from a motorists
35. Willie Hofmeyer’s axing
36. Mvula Trust and the Department of Cooperative Governance and Traditional Affairs’ job creation fraud to the tune of hundreds of millions of Rand
37. Government’s endemic over-use and over-pay of consultants
38. Glynnis Breytenbach’s axing
39. The spy-tape saga
40. Thosan Panday corruption in KZN
41. KZN’s misuse of R785m in 2011
42. Madibeng municipality awarding millions in tenders to its own employees
43. Madibeng municipality’s taxation scam with its employees
44. Madibeng municipality paying money to fictitious companies for fictitious work
45. Madibeng municipality paying for funerals that never took place
46. Madibeng municipality paying for home renovations for its employees
47. Taung municipality paying triple digit increases without consultation
48. Morake Incorporated Attorneys & the Rustenburg provincial department – R13m paid in fees for a disciplinary hearing
49. Endemic corruption at Mbhashe municipality to the point of the mayor and 7 others being fired
50. Corruption exposed by SIU at Rustenburg and Madibeng local municipalities
51. Corruption exposed by SIU at Moses Kotane
52. Corruption exposed by SIU at Bojanala District
53. Corruption exposed by SIU at Ventersdorp
54. Corruption exposed by SIU at Greater Taung
55. Corruption exposed by SIU at Tswaing
56. Corruption exposed by SIU at Ramotshere Moiloa
57. Corruption exposed by SIU at Mahikeng
58. Corruption exposed by SIU at Dr Kenneth Kaunda District
59. Corruption exposed by SIU at Maquassi Hill
60. Corruption exposed by SIU at Moretele
61. Corruption exposed by SIU at Lekwa-Teemane
62. Corruption exposed by SIU at Ngaka
63. Corruption exposed by SIU at Modiri Molema District
64. Corruption exposed by SIU at Ditsobotla
65. Corruption exposed by SIU at Kagisano
66. Corruption exposed by SIU at Kgetlengrivier
67. Corruption exposed by SIU at Ratlou
68. Corruption exposed by SIU at Dr Ruth Mompati District
69. Corruption exposed by SIU at Naledi Local Municipality
70. Awarding of tenders to Vivian Reddy following Zuma intervention
71. Twenty five cases, involving R768 827 043 in KZN in 2010 alone
72. The Glen Agliotti case
73. Diverting of public funds to Swazi King
74. Diverting of public funds to Robert Mugabe
75. Diverting of public funds to Zanu-PF
76. Funding of military equipment in Zimbabwe with SA public funds
77. Zuma’s corruption in numerous cases prior to his presidency
78. Fraud, corruption, tender-rigging, kickbacks and irregular appointments at Tshwane municipality
79. Endemic corruption at the heart of Mpumalanga municipality including physical violence to avoid publication of facts
80. Public Works’ endemic misuse of public funds for private residences of government officials, disguised as security upgrades.
81. Public Works leasing back property from its own employees for official use, while footing the initial bill too
82. BEE fronting for SAPS land deals outside of the main contract for PTA head office through Roux Shabangu
83. R2.4bn in improper bonuses paid out by SABC to directors
84. SABC paying fictitious staff
85. ANC controlling SABC with threats of fund withdrawals
86. SABC awarding tenders to its own employees
87. Ekurhuleni employees signing off on deals that do not exist
88. Land fraud in KZN worth R50m involving three officials and a businessman for farms and other properties
89. Department of arts and culture misuse of R42m during the soccer world cup
90. Loss of dockets relating to high profile corruption cases
91. Education department officials involved in examination selling
92. Parastatals’ inflated sponsorship of events hosted by the Guptas and New Age
93. New Age website having massive funds diverted its way from government budgets without readership stats to speak of
94. The City of Johannesburg rigging a large tender in favour of Regiments, an ANC-connected empowerment firm central to a consortium that made the JHB mayor’s wife a *multimillionaire.
95. On-Point Engineering securing Limpopo tenders through Julius Malema and his accomplices
96. Amathole district municipality awarding irregular tenders relating to vehicle tracking
97. John Block’s R112m tender fraud relating to water purification equipment
98. Gaston Savoi’s R112m tender fraud relating to water purification equipment
99. DoC official awarding R500k tender to his wife
100. Martin Masemola from Dept of Minerals & Energy receiving financial kickbacks and land for favours to friends and family
101. Bosasa and Correctional Services corruption to the tune of R3bn in tender rigging
102. Public Works corrupt relationship with Saab and the blacked out agreements that not even they are entitled to
103. R63 million tender fraud at Limpopo traffic department involving Mbhazima Sithole, 45, Felix Baloyi, 34, Mphateleni Musubu, 43, and Lufuno Muladi, 27, all directors of various companies that secured tenders illegally
104. Gauteng Finance dept awarding R23m in IT tenders fraudulently
105. Kelly Group securing labour broking tenders worth R372m by BEE fronting
106. Eastern Cape health department and their tender fraud worth over R800m in just one single case
107. Obed Mlaba securing tenders to the value of R3bn in KZN
108. KZN misuse of public money to the tune of R532m in 2009
109. Public Works in Limpopo involved in tender fraud for undisclosed sum late last year
110. Tshwane kickback scheme for tenders to the tune of R1b
111. Tshwane maladministration in their financial dept for undisclosed sum
112. Philemon Mohlahlane (ex Land Bank CEO) embezzling R19m out of the Land Bank for his personal and business use
113. Prestige Portfolio tender corruption at Public Works as investigated by SIU (this appears to be linked to Project prestige – Zuma’s development)
114. Bobby Motaung’s multi-million rand fraud involving stadium tenders
115. Ekurhuleni Metro IT tender for R21m that was used to buy Porsches and Mercs
116. Limpopo transport tender fraud of R63m
117. Limpopo Premier Cassel Mathale’s influence in awarding tenders
118. Buffalo City Metro tender fraud of R12m
119. Ekurhuleni Chief Financial Officer Mr Zakes Myeza, Chief Director Water and Sanitation Mr Slindokuhle Hadebe, Acting Head of Department of then Roads and Stormwater Mr Moses Maliba, Junior Official Water and Sanitation Ms Nomusa Malimabe and Independent Contractor Mr Miyelani Holeni’s all involved in tender fraud worth R166m
120. Julius’ cousing Tshepo Malema involved in corruption and fraud through the government worth R63m
121. Pikitup tender fraud relating to contracts awarded through City of Johannesburg for undisclosed sum
122. Vivian Reddy’s company awarded an inflated contract of R1.25bn for smart electricity meter reading in Joburg despite never having done anything like it before
123. Xhariep district mayor Mongi Ntwanambi’s fraudulent travel expenses claims costing half a million rand a year
124. Free State Government paying R140million for their website created with a $40 WordPress template
125. Limpopo Health’s unaccounted for R739m tender spend for 2012
126. Gauteng Health’s R1bn corruption in 2010
127. ANC’s investment body, Chancellor House, receiving yet another state tender worth billions of rands
128. ANC’s investment arm, Chancellor House, receiving millions from the Medupi & Kusile deals
129. ANC’s investment arm, Chancellor House, to benefit significantly from R40bn Eskom tenders
130. The spending of more than R13.5m on Nomvula Mokonyane’s home. A home that was purchased for R11.5m