news march 2008

Fraud News from Africa: March 2008

Senior health official charged with corruption

A SENIOR Department of Health official was yesterday arrested and charged for corruption after allegedly paying R19680 to a company linked to her, for jackets, which were never delivered.

Amahlati Local Services district manager Mzikazi Vivien Nteyi appeared briefly in the King William’s Town Magistrate’s Court following her arrest by a special task team earlier in the day. (Read more...)

Lehman hit by $355 million fraud

Lehman Brothers was fleeced out of more than $355 million in a fraud the U.S. investment bank believes was perpetrated by two employees at Japanese trading house Marubeni Corp. (Read more...)

Pension fund fraud accused seek deal

The high court trial of eight executives and three firms charged with siphoning off R900 million in pension fund surpluses was postponed on Friday, pending negotiations on a plea agreement. (Read more...)

Senior Eastern Cape managers suspended

The Nyandeni Local Municipal council in the Eastern Cape has suspended two of its senior managers for three months with full pay over allegations of fraud and corruption.

The two allegedly defrauded the municipality of hundreds of thousands of rands. Municipal Manager, Tshaka Hlazo and Lawrence Mabila are accused of paying themselves 13th cheques and performance bonuses twice last year. (Read more...)

Pharmacist in new medical aid fraud probe

A Durban pharmacist who has already been charged with 6000 counts of medical aid fraud is now wanted on fresh fraud allegations.

The Pietermaritzburg Magistrate’s Court this week issued warrants of arrest for Ismail Mall Mahomed and two employees, Dhaaruni Ankiah and Morgan Naidoo.

Mahomed, the owner of Highway Pharmacy in Pinetown, was charged last year with fraud amounting to more than R6-million for allegedly submitting false claims to medical aid schemes.

It is alleged that Mahomed issued “buying vouchers” in exchange for client details to make claims to medical aid schemes. (Read more...)

R2bn tender corruption probe at prison services

Investigation covers contracts approved by department’s ex-boss, Linda Mti.

The corruption-busting Special Investigating Unit (SIU) is probing more than R2-billion worth of tenders issued by the Department of Correctional Services.

The tenders are suspected to have benefited top departmental officials. (Read more...)

Charges against pilot withdrawn

Charges of fraud against a Johannesburg pilot arrested in Zimbabwe were withdrawn on Thursday, the Movement for Democratic Change (MDC) said . (Read more...)

‘Pensioners fall prey to burial scam’

Local leaders in Newcastle, KwaZulu-Natal, say they have uncovered a multi-million rand funeral scam affecting thousands of pensioners.

Pensioners have been conned into contributing a large portion of their pension earnings for a “non-existent funeral policy”. (Read more...)

Scary new secrets Bill

If new official secrets legislation had been on the statute books, the Mail & Guardian’s award-winning articles about police National Commissioner Jackie Selebi could have been illegal -- and M&G reporters could have faced lengthy jail terms. (Read more...)

Can you believe it?

Crime levels in the Northern Cape are among the lowest in the world - even lower than Spain - making South Africa's biggest province one of the safest places to live. (Read more...)

No reason given for not going after May

THE Directorate of Public Prosecutions will not prosecute Oudshoorn‘s former municipal manager, Merwin May, on fraud and corruption charges.

No reasons were given to the police for this decision.

DA councillor James Swigelaar, deputy mayor of the town at the time, laid the charge on December 4, 2006. Swigelaar based his allegations on payments made to the former area manager and housing head, Christo van der Mescht, as part of his retrenchment package. (Read more...)

Chief to know fate next week

The lengthy multi-million rand fraud, theft and corruption trial of Bakgatla-Ba-Kgafela leader Chief Nyalala Pilane draws to a close in the Mogwase regional court, North West, next week.

Magistrate Stefaan du Toit has set down Monday and Tuesday for judgment in the trial, which began on May 2005.

When he adjourned the case last November, Du Toit ordered the defence and state to submit written arguments before January 28. (Read more...)

Land claims head gets bail

Limpopo’s land claims commissioner Mashilo Mokono was yesterday granted bail after appearing on charges of fraud and perjury.

The Polokwane magistrates’ court granted Mokono R7 000 bail and his case has been set down for August 5 and 6 this year.

The case is likely to attract many land claimants from across the province who are interested in the fate of the commissioner. (Read more...)

Ombudsman issues annual report

Summit TV speaks to the Ombudsman for Short-Term Insurance Brian Martin about the release of their annual report

JANE VAN RENEN: The office of the Ombudsman for Short-term Insurance has just issued its annual report. Joining me to chat is the Ombudsman for Short-Term Insurance Brian Martin. Brian, can you give us the highlights from this year’s annual report?

BRIAN MARTIN: Obviously the first thing is the very significant increase in the number of complaints my office received over the past year - we received for the first time over 9,000 complaints an increase of roughly 26% on the previous year. (Read more...)

SABC won’t try to recover R32m

The SABC will not try to recover any money from former Lesedi FM presenter Thuso Motaung.

Motaung was recently acquitted by the Johannesburg commercial crimes court after being charged with defrauding the corporation of R32million, allegedly committed while he worked for the SABC.

The public broadcaster is denying reports published immediately after the case saying that they had pledged to pursue the matter and recover all the money they had lost. (Read more...)

Social grant fraud is ’rife in former Bantustans’

CAPE TOWN — Fraud was rife in the social grant administration system in several provinces, especially in Kwa- Zulu-Natal and “other former Bantu-stans”, Social Development Minister Zola Skweyiya said yesterday.

He said the morality of civil servants in these former homelands had changed little.

There were a lot of syndicates working in the young South African Social Security Agency (Sassa ). It was established two years ago to take over the payment of R70,7bn in grants to about 12-million beneficiaries. (Read more...)

British finance minister outlines plans for whistleblower law (UK)

Britain's Finance Minister Alistair Darling, seen here on 11 Downing Street in London, on March 12. Finance minister Alistair Darling outlined plans on Friday to equip Britain's financial watchdog with powers to give individuals whistleblower protection in return for evidence in investigations. (Read more...)

Arms deal 'not going to go away'

Nobel peace laureate Archbishop Desmond Tutu on Thursday added his voice to calls for a judicial inquiry into the multi-billion rand arms deal.

In the prepared text of his speech for the Dullah Omar memorial lecture at the University of the Western Cape, he said South Africans could not pretend corruption was no longer a serious problem.

"We need to do something about the arms deal," he said. (Read more...)

Police officer arrested for corruption

A police officer was arrested for corruption on Thursday, after he allegedly stole money owed to the family of a boy who died in an initiation ceremony, Mpumalanga police said. (Read more...)

Health official suspended

The department of health has suspended an official on allegations of corruption, it said on Thursday.

The official allegedly received bribes in order to employ foreign doctors at public hospitals in South Africa, said department spokesperson Sibani Mngadi. (Read more...)

Chiluba grilled in graft probe

Former Zambian president Frederick Chiluba was interrogated today over his role in the alleged theft of 7.8 million dollars (about 4.9 million euros) during his tenure, a top investigator said.

Chiluba, who faces fresh arrest for corruption, was interrogated for more than two hours by an elite graft-busting unit over the theft of the money paid to a Canadian firm for the supply of maize that was never delivered under his rule, Max Nkole told reporters. (Read more...)

Tainted Moz cops to be collared

More than 100 Mozambican police officers will soon be disciplined for their part in criminal activities, especially extortion, state media reported on Thursday.

Pedro Cossa, spokesperson of the national police service (PRM) was quoted by Radio Mozambique as saying the process would be carried out in a few days.

The report comes at a time when the police service has been tainted with accusations of corruption and incompetence. (Read more...)

Profs launch 'trial within a trial'

A "trial within a trial" this week began in court over the University of KwaZulu-Natal's corruption-accused Professor Pumela Msweli-Mbanga and a former dean and senior lecturer Dr Nobubele Potwana.

Their legal counsel lodged an objection at the Commercial Crimes Court citing that vice-chancellor Prof Malegapuru Makgoba did not have the authority to have Msweli-Mbanga and Potwana forensically investigated last year.

Makgoba was on Wednesday cross-examined by Msweli-Mbanga's legal counsel advocate S'thembiso Mdladla. (Read more...)

Corruption scandal rocks Bulgaria (Europe)

Bulgaria's much-criticised efforts to stamp out corruption have been shaken by the arrest of two top crime-busters and calls for Interior Minister Rumen Petkov to resign.

The European Union (EU) has led pressure for its newest member to clean up its act but former interior ministry number two, Iliya Iliev, was arrested and charged with abuse of power on Tuesday just three days before a visit by European Commission president Jose Manuel Barroso.

(Read more...)

LOC drops ball on Mnisi appointment

Industry insiders suggest the 2010 World Cup Local Organising Committee (LOC) should have done a proper background check on Zakes Mnisi before hiring him as IT head.

The comments follow ITWeb's exclusive revelations earlier this week that the LOC had suspended Mnisi with immediate effect, amid allegations of financial impropriety.

One reliable source, who asked to remain anonymous, reveals to ITWeb that Mnisi has a record of corrupt activities. (Read more...)

Suggestions to progress with housing

THE incompetence of the provincial government to have a single database of all the people on the waiting list which can be reviewed every year is the cornerstone of the housing problems in the Western Cape. Added to this is the allocation of houses along party political lines.

Corruption and maladministration are the order of the day in the allocation of houses. Chapter two of our constitution is very clear on the rights of our citizens to have houses. Section 26(1) states that everyone has the right to have access to adequate housing. The UDM youth in the Western Cape is saddened by the fact that the rights of our people as enshrined in our noble constitution is trampled upon. (Read more...)

Sassa has not stopped fraud: Skweyiya

The new SA Social Security Agency (Sassa) has failed to put an end to social welfare grants fraud, MPs heard on Thursday.

"I'm not satisfied with the security at Sassa. A lot of fraud still exists, especially in provinces such as KwaZulu-Natal," Social Development Minister Zola Skweyiya told the National Assembly's social development committee.

As a result, the department had brought in the Special Investigations Unit (SIU) to assist in rooting out corruption at SSassa. (Read more...)

Info becomes the new currency

Today, organisations not only use information to build their business, but they also leverage that information for a competitive advantage. The information attribute that provides an edge over the competition is the very same factor that has driven the value of that information skywards.

Trading information for gain has subsequently become the new economy. Information has become the new currency. Information is itself the target. Attached to this is the economy of also protecting that information. And if you don't want to voluntarily trade your information, cyber-criminals insist on finding alternative means to expropriate that information, with or without your consent and cooperation. (Read more...)

Pilot to appear in court

The Johannesburg pilot arrested in Zimbabwe was expected to appear in a Harare court on Thursday on a charge of fraud relating to a hotel booking, said Roy Bennett, treasurer general of the Movement for Democratic Change. (Read more...)

Health union gets chop over R14m investments

The axe has finally fallen on the Health and Other Service Personnel Trade Union of South Africa (Hospersa) following allegations that its top brass had squandered R14million in union funds.

Yesterday, the Department of Labour announced that Hospersa, which has 100000 members around the country, was being de-registered following an investigation into the allegations.

The action came afterthe union granted unsecured loans totalling millions of rands to private companies in which its bosses held directorships. (Read more...)

Police warn public to be on lookout for scams

The SA Police Service's Commercial Crimes Branch said it was ready for the 2010 Fifa World Cup, but the public still needed to be made more savvy about increasingly common new and old forms of card or internet fraud.

Speaking to the media in Bellville on Wednesday, fraud specialist Superintendent Jerome Hartenberg said police had made studies of how other countries prepared themselves for commercial crime during big international sporting events. (Read more...)

Bogus employment agents ordered to reimburse clients

TWO East London men who posed as employment agents were yesterday ordered by the city’s Regional Court to pay back R23000 which they defrauded from unsuspecting clients. (Read more...)

LOC official suspended for alleged irregularities

The IT Manager of the 2010 Fifa World Cup Organising Committee South Africa (OC), Zakes Mnisi, has been suspended pending the outcome of a disciplinary enquiry into alleged irregularities.

According a report by Sapa, the suspension is with effect from 20 March 2008 and followed an investigation by an external firm of forensic investigators which revealed certain alleged irregularities. (Read more...)

Gauteng govt to probe ‘misconduct’

Gauteng premier Mbhazima Shilowa will study allegations of misconduct against the Department of Agriculture, Conservation and Environment (GDACE).

In a statement on Tuesday, the premier's office said allegations of misconduct against GDACE MEC Khabisi Mosunkutu had been received from the Democratic Alliance (DA) on Monday and the MEC had been asked to respond to the claims.

Last week, DA spokesperson Rika Kruger called for a probe into "suspicious" interventions regarding the granting of approvals for some multi-million rand development. (Read more...)

Chiluba grilled over dodgy deal

Lusaka - Members of Zambia's presidential task force on corruption on Wednesday questioned former president Frederick Chiluba in the case of a Canadian company that defrauded the state over a deal to supply it with maize during a drought in the mid 1990s.

Carlington Sales Company was contracted by the government to supply maize in what the investigators now believe was a scam between some government officials and the company. (Read more...)

Storm clouds for weatherman

An urgent inquiry is being launched into allegations of gross misconduct and wasteful, irregular and fruitless expenditure at the SA Weather Service. (Read more...)

IJR busts honcho for 'misappropriating funds'

The Institute for Justice and Reconciliation (IJR) has axed one of its top staff after an internal hearing found him guilty of misappropriating funds.

In a brief statement released by the institute, executive director Fanie du Toit confirmed its head of Political Engagement in Africa, Paul Nantulya, had been dismissed after a formal disciplinary hearing. (Read more...)

Zimbabwe charges SA pilot with fraud

Zimbabwe police have pressed fraud charges related to a hotel booking against the Johannesburg pilot arrested while flying Movement for Democratic Change (MDC) leader Morgan Tsvangirai to election rallies, the party said today.

Zimbabwe’s police were not able to confirm his arrest or provide reasons, but MDC treasurer general Roy Bennett said that according to the party’s lawyers in Harare, when he arrived at the hotel, he occupied the room that somebody else had booked for him and so the police charged him with fraud.

"They charged him under ridiculous charges, and are holding him, because somebody else booked him into the hotel under another name because he was not there," said Bennett. (Read more...).

Good archiving boosts e-mail security

E-mail is the weakest link in the security chain for most companies, says Marius Nicholson, MD of Naxian.

He says that with billions of e-mails being sent every year, it's the single most important channel through which sensitive information can leak out of an organisation.

“It's also a convenient way for fraudsters and renegades to manage their affairs. Keeping an accurate, easily accessible archive of all the e-mail passing through your servers is a critical security measure,” he says. (Read more...)

Treading a 'special' plain

Dubai - A man claiming to be the ambassador of a self-proclaimed state in Australia has appeared in a Dubai court charged with fraud, a newspaper reported on Wednesday.

The unnamed 48-year-old Iranian insisted on Tuesday he should be treated as a diplomat, claiming he was the ambassador of the so-called Principality of Hutt River, in Western Australia, English-language daily 7Days said. (Read more...)

Software scam

Complaints that Stock Market College is taking its clients for a ride recently resurfaced despite an undertaking in December 2006 by its director, Herdus van Pletsen, that he would give a refund to all customers who had not received the promised training.

What the consumers got for the R10000 was a textbook, More Charting for Profit, by Tean Tempkim, worth R80, a CD worth less than R7 and a mouse and pad worth less than R10. All these are available at PDSnet in Bruma Lake, Johannesburg. (Read more...)

Two Nigerian ministers resign over graft charges

ABUJA (Reuters) - Two Nigerian cabinet ministers have resigned weeks after they were accused of embezzlement by the anti-corruption police, President Umaru Yar'Adua's office said on Tuesday. (Read more...)

Parties oppose arms deal amnesty

OPPOSITION parties have come out against any suggestion of amnesty for arms deal offenders linked to SA’s controversial multibillion-rand weapons deal. (Read more...)

Lotto fraud case begins against ex-EP rugby boss

THE long delayed case in which former Eastern Province Rugby Union chief executive Phillip Joseph allegedly misappropriated funds allocated by the national lottery finally started in the Port Elizabeth commercial crimes court yesterday.

The state alleges Joseph forwarded a false invoice for more than R400000 to the National Lotteries Board in 2003 for rugby apparel and equipment bought. (Read more...)

Prosecutor loses charge sheet

Thirteen reserve constables charged with corruption were set free after they appeared at the Komatipoort magistrate's court on Tuesday.

This was because the prosecutor had misplaced the charge sheet, said Mpumalanga police spokesperson, Leonard Hlathi. (Read more...)

Opposition united in bid to keep Scorpions

The Democratic Alliance (DA) says it will write a letter to the Speaker of the National Assembly to stop the legislative process currently underway to disband the Scorpions. This follows a resolution adopted during the ANC's Polokwane conference in December to incorporate the Scorpions into the South African Police Service (SAPS).

DA Chief Whip Ian Davidson says there is unanimity among all opposition parties to keep the Scorpions. The United Democratic Movement is also contemplating legal action to stop the incorporation. Davidson says the Mbeki camp is also not in favour of the Scorpions being disbanded. (Read more...)

Pre-employment screening as a critical risk-management tool

In today's competitive economic environment, companies cannot afford to be sidetracked by employee problems such as dishonesty, theft, false CVs, fraud or harassment. Employers have increasingly turned to pre-employment screening as a critical risk-management tool to try and avoid hiring problem employees in the first place. (Read more...)

Another LOC head rolls

Zakes Mnisi, IT head of the 2010 World Cup Local Organising Committee (LOC), has been suspended with immediate effect, amid allegations of financial impropriety.

This morning, Tumi Makgabo, outgoing spokesman for the 2010 LOC, confirmed Mnisi's suspension, but would not comment on allegations by well-placed sources that the IT head had misappropriated funds in the execution of his duties. (Read more...)

Executive tries to discredit witness in $1.9 billion corporate fraud case

COLUMBUS - The government's chief target in a $1.9 billion corporate fraud case took the stand yesterday to criticize a former employee he is accused of trying to bribe to give favorable testimony.

Former health care executive Lance Poulsen testified that the key prosecution witness - Sherry Gibson, former executive vice president at National Century Financial Enterprises - didn't get along with other employees. He said two employees accused her of being physically and sexually abusive toward them. Poulsen did not give details.

Gibson's attorney, Terry Sherman, said he'd never heard the allegations and would not have his client respond to them. (Read more...)

No confidence in police and courts

The courts and the police get similarly low scores at the bottom end of the scale when it comes to trust and confidence in South Africa's law-enforcement structures.

This was found by an Ipsos-Markinor survey commissioned by Independent Newspapers of 1 496 adults in urban areas throughout the country. (Read more...)

There is no such competition, says Unilever

Unilever South Africa has warned the public about a scam concerning one of its products, Knorrox stock cubes, instant soups and soya mince.

The company has learnt that two men and a woman have been calling people on their cellphones, telling them they have won "the Knorrox competition" and asking them for their banking and personal details. There is no such competition. (Read more...)

Courts show no mercy for fraud

Courts have been sending out stern warnings to those who commit fraud, imposing harsh prison sentences with no option of a fine. (Read more...)

What is Mbeki trying to hide?

Thanks no doubt to score-settling inside the ANC, a glut of new information is emerging about the discredited arms deal — and much of it features the name of the President, writes Andrew Feinstein

Recent revelations concerning South Africa’s controversial multimillion-rand arms deal appropriately place President Thabo Mbeki at the centre of the deal and its machinations. (Read more...)

Couple fight bank over ‘fraudulent’ property deal

A Durban couple have asked the high court to overturn a debt judgment in favour of Standard Bank on a R3.2-million coastal property they claim they never bought.

They claim that documents relating to the sale of the home at 33 Valley View Road, Amanzimtoti, are false. (Read more...)

Sars report confirms OR Tambo syndicates

An internal report on the perilous state of security at OR Tambo International Airport which was leaked to the media this week, blows apart recent assurances by airport authorities that criminal syndicates are not operating there.

The confidential memorandum by the SA Revenue Service states that since January last year, police have investigated 400 cases of victims - mainly Nigerian nationals - followed home from the airport and robbed outside their destinations. (Read more...)

Thousands stuck with fake art prints

Take a second look at that signed Picasso print you bought on eBay. A ring of art counterfeiters has sold thousands of prints since 1999 bearing the forged signatures of Picasso, Miro, Dali and other famous artists to buyers around the world. (Read more...)

Yet another top investigator faces probe

This weekend the head of yet another embattled security chief seems set to roll as a question mark hangs heavy over the future of Scorpions boss Leonard McCarthy. (Read more...)

Xingwana cited in divorce

Agriculture and Land Affairs Minister Lulu Xingwana is being sued for R100 000 by the estranged wife of acting Land Bank CEO Phil Mohlahlane in a divorce suit.

In papers filed this week in the Johannesburg High Court, Mohlahlane's estranged wife, Joyce, says her husband and Xingwana have conducted an affair since 2006.

She alleges that Xingwana gave her estranged husband "undue privileges" including overseas trips and "positions of undue power". (Read more...)

Mbeki faces amnesty pressure

President Thabo Mbeki could face more pressure over the next few months after the Mail & Guardian learned that certain supporters of Jacob Zuma are informally building a case against the president.

The aim of the pressure would be to force him to agree to a general amnesty for those with dirty hands in the multibillion-rand arms deal or face having to explain himself in court. (Read more...)

Arms probe reopened

The Scorpions have reopened the arms-deal investigation in what may be their last major assignment.

The Mail & Guardian has established that the Scorpions recently registered an investigation into South Africa's multibillion-rand purchase of jet trainers and fighter jets from British arms giant BAE Systems and Sweden's Saab. (Read more...)

An arm and a leg

Any person who owns a debit, credit, petrol or store card, a driver’s license, identity document or cell phone can be the victim of identity theft and fraud.

Criminals can use these to fraudulently obtain credit cards, open accounts, rent apartments, purchase cell phone contracts or even buy vehicles and property — all in your name. (Read more...)

Fraudster Nel receives sentence

The Pretoria specialised commercial crimes court has sentenced one half of South Africa's very own "Bonnie and Clyde", Llewellyn Nel, to 15 years' imprisonment following an eight-month countrywide crime spree. (Read more...)

Curatorship is costly option for entangled Ovation investors

In contrast to contingency fees, curators of the Ovation companies (which are part of the Fidentia fallout) are paid, as agreed with the registrar, “in accordance with the norms of the attorneys and auditors professions respectively”.

Put simply, attorney John Levin and accountant Barend Petersen are paid at hourly professional rates.

The curators’ second report to the court on Ovation, for the six months to last August, showed their fees for the period came to R3.45 million, or R287 000 a month for each of them. Assuming 22 working days in a month, each receives R13 045 a day. And assuming an eight-hour working day, it comes to R1 631 an hour each. This doesn’t seem excessive by the standard of rates prevailing in their professions, where more than R2 200 an hour for top lawyers and accountants is the norm.

But few would be able to perform at this billable rate for eight hours a day, 22 days a month, month in and month out. (Read more...)

What is priest's punishment for embezzlement?

The Anglican priest convicted of embezzling almost R500 000 from an NGO advising disadvantaged pupils on careers, forcing it to close, has been given a slap on the wrist by his church four months after his criminal conviction. (Read more...)

'Ministers linked to arms deal'

Documents from a German probe appeared to link members of Cabinet to arms deal corruption, Democratic Alliance spokesperson on the arms deal Eddie Trent said on Wednesday.

He said the DA had come into possession of "highly significant" documents from the chief senior public prosecutor in Germany.

In a letter to Swiss authorities last year, German prosecutors had claimed the German Frigate Consortium paid "considerable bribes" to conclude a tender agreement for South Africa's four corvettes. (Read more...)

Absa releases anti card skimming software

Absa has reaffirmed its commitment to preventing financial fraud by implementing new anti card skimming technology on its ATMs called ‘Jitter’ software. Jitter causes a vibration to the ATM card reader which sends a disrupted signal to any illegal skimming device.

This prohibits the copying of the track data from banking cards and makes card skimming impossible. Absa will install this Jitter software to all fully branded Absa ATMs and Self Service Kiosks. This network of 4 357 ATMs excludes third party, Absa supported ATMs. (Read more...)

Officials offered Swiss acc data

An unidentified person has offered to sell officials in the southwestern German state of Baden-Wuerttemberg data on more than 30 000 bank accounts held by Germans in Switzerland, the daily Stuttgarter Zeitung said Wednesday. (Read more...)

Lesedi FM couple walks free

The Johannesburg Commercial Crimes Court has ruled in favour of suspended Lesedi FM presenters Thuso and his wife Mamontha Motaung and co-accused Joshua Ramme in the SABC's fraud and corruption case against them. (Read more...)

McBride’s secrets

If he had to tell the court of all the illegal actions he undertook on Ekurhuleni Metro Police Chief Robert McBride’s instructions, he would be in the witness box for two years, a senior officer told the Pretoria Regional Court yesterday. (Read more...)

Taxpayers fork out millions for McBride

Taxpayers are reported to have forked out at least R6,9-million in legal fees for Robert McBride, the Ekurhuleni metro's suspended police chief.

Last night, Izak Berg, a local councillor and chairman of the Independent Ratepayers Association of South Africa, said he had documents to prove that McBride's legal fees had escalated from R2,3-million at the end of last year to R6,9-million to date. (Read more...)

Interdict to halt disbanding of Scorpions

Johannesburg-based businessman Hugh Glenister is seeking from the Pretoria High Court an urgent interdict against the government’s plan to pass legislation that disestablishes the Directorate of Special Operations (DSO) - otherwise known as the Scorpions. (Read more...)

Cosatu seeks arms deal transparency

The Congress of South African Trade Unions is calling for the internal ANC report on corruption in the arms deal to be dealt with "openly and transparently". (Read more...)

Billions lost in bank trading scam

FRENCH rogue trader Jerome Kerviel has told investigators that co-workers helped him place hidden trades that led to multi-billion-rand losses for Societe Generale.

The detained 31-year-old trader claims he asked his assistant at the bank to record fictitious market operations, and that he agreed in full knowledge that Kerviel was trying to conceal his unauthorised deals.

The trader also said he had taken unauthorised “open positions, reaching R5billion-R6bn, from his line manager’s computer, and in his presence,” according to prosecution documents. (Read more...)

Malawi plans to prosecute ex-president for graft

Malawi's Anti-Corruption Bureau (ACB) plans to prosecute former president Bakili Muluzi over $11 million in donor money it says was siphoned into his private account, its director said on Monday. (Read more...)

King of spam faces 26 years

The notorious spammer authorities dubbed "the king of spam" is facing a possible 26-year jail sentence, after pleading guilty in Seattle on Friday to charges of fraud and tax evasion, says IT World. (Read more...)

McBride pleads not guilty

Ekurhuleni police chief Robert McBride today pleaded not guilty in the Pretoria Regional Court to charges of drunken driving, fraud and defeating the ends of justice. (Read more...)

Fidentia fraud case postponed

The case of Fidentia boss, J Arthur Brown, has been postponed to May 2 in the Cape Town Regional court to allow the State to study affidavits submitted by the Fidentia legal team. (Read more...)

Three vital questions Mbeki must answer

President Thabo Mbeki has been challenged to explain in parliament why he allegedly refused to assist the Scorpions’ investigation of the government’s controversial arms deal. (Read more...)

‘Prime target’ for graft

SOUTH Africa’s 2010 World Cup soccer tournament was a prime target for corruption, editors were told in Johannesburg on Friday.

“There was a real fear that South Africa, in the staging of the 2010 Soccer World Cup, could look bad in the eyes of the world because of the dangers of corruption,” said Professor Danny Titus, who chairsthe South African branch of Transparency International. He was addressing a Gauteng meeting of the SA National Editors’ Forum.

“There is no national picture of what tender fraud looks like in South Africa ... what the amounts are and the type of tenders involved, ” he said. The media and its investigative reporting function would be critical over the next two years in casting “sunlight” on the process leading up to the world’s biggest sports spectacle, he added. (Read more...)

Parties urge judicial probe into arms deal

Opposition parties on Sunday repeated their calls for a judicial inquiry into the multi-billion rand arms deal, in the wake of a report that the ANC has urged President Thabo Mbeki to explain his involvement in it. (Read more...)

ANC stacking the deck to kill Scorpions

The ANC top brass, in an effort to make sure the Scorpions are disbanded, in line with resolutions passed at the party's Polokwane conference, is mustering opponents of the elite crime-fighting unit, determined that they will hold sway at parliamentary public hearings on the Scorpions' future. (Read more...)

McBride to appear in court

Ekurhuleni metro police chief Robert McBride will appear in the Pretoria magistrate's court on Monday to face charges of drunk driving, fraud and defeating the ends of justice. (Read more...)

Cops involved in car scam

The involvement of police officers in organised crime - including violent crimes and sophisticated syndicates - is hampering the country's fight against criminals.

Recent statistics have shown an increase in violent crime, including hijackings. Now it seems more police officers are being caught on the wrong side of the law. (Read more...)

Zimbabwe no-balled for missing millions

Serious sanctions are expected to be meted out to the Zimbabwe Cricket Union (ZCU) when an International Cricket Council (ICC) meeting at the weekend discusses the findings of an ICC-commissioned forensic audit into the ZCU’s chaotic financial affairs. (Read more...)

Come clean on the arms deal, ANC tells Mbeki

Business magnate and senior ANC leader Tokyo Sexwale has called on President Thabo Mbeki to explain his involvement in the controversial multibillion- rand arms deal.

Sexwale made an impassioned plea to a hushed ANC National Executive Committee (NEC) meeting on Friday for Mbeki “to take the ANC into his confidence” and explain whether there is any substance to the German investigation that has allegedly implicated Mbeki in arms-deal corruption. (Read more...)

Bodies corporate lose millions in managing agent's accounting botch

As a sectional title owner, you might feel secure knowing that a managing agent is collecting levies and handling the complex's finances on behalf of the body corporate. But how sure are you that your managing agent is suitably qualified for the job? And what happens if your body corporate entrusts the functions of a managing agent to someone or an entity that does not act professionally?

The bodies corporate of more than 70 complexes on Cape Town's Atlantic sea-board are grappling with these questions after their managing agent, Sectional Title Administrators (STA), was placed under provisional liquidation by the Cape High Court on February 8.

The liquidation application was brought amid charges of fraud and the alleged "misappropriation" of funds totalling about R6.8 million. (Read more...)

Scorpions probe Land Bank loans

The Scorpions have begun investigating one of several dodgy Land Bank loans authorised under the irregular R1.1-billion loan scheme initiated by former chief executive Alan Mukoki.

Under the scheme, the bank financed the land development of golf estates, theme parks, residential property and industrial parks, in violation of its agricultural mandate. The Scorpions are investigating a R100-million loan guarantee to Guilder Investments 10 for the development of an industrial park in Durban. (Read more...)

Crooked credit providers face arrest

CREDIT providers who retain borrowers’ bank cards, pensions cards and pin codes will be prosecuted in a criminal court and could face fines of up to R1 million or imprisonment. This is according to the National Credit Act which came into affect in 2007.

But many business owners in the industry fail to realise the seriousness of the matter, says the manager of investigations and prosecution at the National Credit Regulator, Jan Augustyn. (Read more...)

Clerk sold out by rich taste

When creditors clerk Preggie Govender arrived at work one day driving a flashy Mercedes Benz, his colleagues at Mr Price smelled a rat.

And it wasn't long before investigations revealed how he had paid for it - by allegedly siphoning off more than R5-million from the company. (Read more...)

Constitutional Court cliffhanger for Zuma

The Constitutional Court left ANC president Jacob Zuma guessing over the future of his impending criminal trial yesterday.

The court reserved judgment on applications by Zuma and French arms company Thint that it declare unlawful the Durban High Court’s request to the Mauritian authorities that they release to it Thales documents that might be used as evidence against Zuma in his criminal trial. Thales is Thint’s holding company. (Read more...)

French prosecutors oppose rogue trader Kerviel's release

French trader Jerome Kerviel gives an exclusive interview with AFP in February 2008. French prosecutors will ask a Paris court to keep Kerviel behind bars while investigators probe a multi-billion-euro scandal at Societe Generale, a spokeswoman said Thursday. (Read more...)

Arms probe: Germany waits for SA

German prosecutors are waiting for South African justice ministry officials to provide with them details that will help them complete investigations into alleged kick backs paid by steelmaker ThyssenKrupp. (Read more...)

Why all the fuss about Mauritian documents?

The documents the State is seeking to obtain from Mauritius may never be used against African National Congress President Jacob Zuma, the Constitutional Court heard on Thursday.

State advocate Wim Trengove said evidence gathered "does not automatically become evidence before the court.

"Evidence becomes evidence that the State may or may not tender," he said. (Read more...)

Pretoria's 'Clyde' pleads

A Pretoria man accused of going on a crime spree across the country with his girlfriend two years ago on Thursday pleaded guilty to 32 charges of theft and fraud.

Appearing in the Pretoria Specialised Commercial Crimes Court, Llewellyn Nel, 28, admitted that he and his former girlfriend, Tanya van Niekerk, committed eight offences of theft and 24 of fraud while on the run from the police. (Read more...)

Taxman follows paper trail to R35m bust

Five people were arrested in connection with alleged VAT fraud amounting to R35-million, the SA Revenue Service (SARS) said on Thursday.

A former SARS employee had acted as a book keeper to about twelve companies, allegedly involved in a scam in which fraudulent VAT was claimed. (Read more...)

Parmalat trial begins

The main trial over the collapse of Italian food giant Parmalat opens in the northern city of Parma on Friday, with 55 defendants to face charges of bankruptcy fraud and criminal association. (Read more...)

Hoax email suspect pleads guilty

The man believed to be behind a hoax email conspiracy in the ANC, Muziwendoda Kunene, has pleaded guilty in the Pretoria Magistrate's Court to a charge of contravening sections of the Intelligence Oversight Act. This comes after Kunene entered into a plea agreement with the State. (Read more...)

Trial dates set for pair in McBride case

Trial dates for two men who allegedly helped cover up an alleged drunk driving incident involving Ekurhuleni Metro Police chief Robert McBride were set in the Pretoria magistrate's court on Wednesday. (Read more...)

'Lawyers could be raided next'

Jacob Zuma's advocate has denied that the ANC president is trying to neutralise evidence of corruption against him.

Kemp J Kemp SC told the Constitutional Court on Wednesday that Zuma's attempt to challenge warrants used to raid homes and offices belonging to him, his attorneys and French arms company Thint was really about fighting against the constitutional violations he had suffered at the State's hands.

According to Kemp, Zuma's legal team was concerned that, should the State's "unlawful" raids not be reined in by the court, his attorney and defence witnesses would also be vulnerable to search and seizure operations. (Read more...)

DA kicks George mayor Petrus out

CONTROVERSIAL George politician Basil Petrus has been kicked out of the DA and relieved of his position as mayor of the town.

The speaker in the George council had requested a forensic investigation into the details of two business transactions concluded by Petrus. This investigation would continue despite the fact that Petrus had been dismissed from his position, Swart said. (Read more...)

Mauritian PM won't be aiding Zuma

Mauritian Prime Minister Navinchandra Ramgoolam says he'll not assist ANC President Jacob Zuma in his case which is before the Mauritian court. Ramgoolam says the move would undermine the independence of the judiciary in his country. (Read more...)

Two held in raids as ‘fake licence‘ centre shut – again

THE Fort Beaufort traffic department‘s test centre has been closed for the second time in four years for allegedly issuing thousands of fake drivers‘ licences.

Police also arrested two men in Motherwell, Port Elizabeth, in connection with the scam.

People “throughout the province” were apparently able to approach a syndicate – comprising traffic officials, driving instructors and others – through intermediaries in Port Elizabeth, Fort Beaufort and King William‘s Town, who would then organise a fake license from the Fort Beaufort test centre. (Read more...)

'Probe corrupt MPs'

An opposition politician has urged National Assembly Speaker Baleka Mbete to launch an urgent investigation into claims that some MPs were actively undermining a Home Affairs Department crackdown on internal corruption. (Read more...)

Zuma conviction very possible, says State

The state believes it has a good chance of convicting Jacob Zuma on corruption, its advocate Wim Trengove told he Constitutional Court on Wednesday, as he fought for the right to keep documents seized in the investigation against Zuma.

"We are sure that we have a case, not merely a prima facie case, but a case with a reasonable prospect of conviction," Trengove said, with Zuma sitting behind him in the front row of the public gallery. (Read more...)

Serbian FA chief quits

Belgrade - Serbian Football Association (FSS) president Zvezdan Terzic stepped down on Wednesday over charges of fraud and abuse of power brought by the country's interior ministry. (Read more...)

Alleged McBride's helpers to know their fate

Trial dates for two men who allegedly helped cover up an alleged drunk driving incident involving Ekurhuleni Metro Police Chief Robert McBride were set in the Pretoria magistrate's court on Wednesday. (Read more...)

Judge has 'no difficulty' with raid evidence

The type of "creative conspiracy" Jacob Zuma was allegedly involved in justified broad investigation, a Constitutional Court judge has stated.

And Justice Zac Yacoob on Tuesday said he had "no difficulty" with the information that the state had provided to justify the search and seizure operations it conducted on Zuma and his attorneys' homes and offices. (Read more...)

Zuma action 'gives justice a bad name'

The National Prosecuting Authority claims Jacob Zuma's attacks on the State have no proven basis in reality and have urged the Constitutional Court to "take a stand" against them.

Trengove described Zuma's legal attempt to have the August 2005 Scorpions' warrants used to raid his and his attorneys' homes and offices as the type of litigation that "gave the administration of justice a bad name". (Read more...)

Belgian fugitive remains behind bars

A 51-year-old Belgian man, who is a fugitive from justice in his home country is accused of fraud in South Africa involving a total amount of R2,9-million.

The man, Paul Feyen, has approached the Cape High Court to be released on bail, but the court refused. (Read more...)

Partner spills the beans on Motaung

Popular Lesedi FM presenter Thuso Motaung wanted Power Mix to pay money directly into his personal account rather than into that of a company of which he was joint director with a friend. by Mfundekelwa Mkhulisi.

Power Mix distributor Costa Macropolus told the Johannesburg commercial crimes court in cross-examination yesterday that Motaung had instructed him to deposit his share of the proceeds from the sale of the product directly into his account. (Read more...)

Fidentia victims' money to be retrieved

More than 50 000 widows and orphans, who lost hundreds of millions of rands in the alleged Fidentia swindle, are to receive at least a portion of their dues in about three months' time, co-curator Dines Gihwala told MPs on Monday. (Read more...)

'Boxes of Zuma's financial records taken'

ANC president Jacob Zuma sat quietly in the front row of the Constitutional Court on Tuesday, listening to his legal team challenge the validity of the warrants used to seize documents that could be used against him in his forthcoming corruption trial.

With a quick pat on the back for newly appointed ANC spokesperson Jessie Duarte and a warm handshake to investigator Johan du Plooy, the man who could be president settled next to Pierre Moynot, chief executive of Thint, a French arms company implicated in the bribes Zuma is alleged to have received. (Read more...)

Suspended police chief faces expulsion

The suspended police chief at the centre of the Tony Yengeni controversy faces possible expulsion tomorrow. Today, Siphiwo Hewana was found guilty on six charges related to his tampering with due process in Yengeni's arrest. (Read more...)

FIFA executive Leoz named by fraud trial prosecutors

ZUG, Switzerland (Reuters) - Prosecutors investigating the collapse of FIFA's former marketing partner ISL presented evidence on Tuesday of payments made from a secret company bank account to FIFA executive committee member Nicolas Leoz. (Read more...)

Search warrants ‘no rubber stamp’

ANC President Jacob Zuma and French arms manufacturer Thint have launched a last-ditch bid to prevent key documents seized in 2005 from being used against them.

Warrants used by the Scorpions to search the premises of French arms company Thint were flawed because they failed to state for which case they were needed, the Constitutional Court heard today.

Peter Hodes, an advocate representing Thint, said: "The warrants never indicated that the fraud and tax offences (mentioned in the warrants) were offences committed by Zuma. (Read more...)

Holomisa calls to halt ANC kickbacks

The leader of the United Democratic Movement, General Bantu Holomisa, on Monday called on big business to defy the practice of patronage, and to stop being accomplices in the practice of awarding deals on the basis of people's political connections. (Read more...)

Dutch court convicts Nigerian Internet fraudsters

AMSTERDAM, March 10 (Reuters) - A Dutch court on Monday sentenced three members of a Nigerian gang to up to four years in prison for extorting tens of thousands of euros from victims who answered emails promising a stake in unclaimed inheritances. (Read more...)

Zuma's bid to keep documents unread

ANC president Jacob Zuma will take his seat in the Constitutional Court on Tuesday in a last-ditch bid to prevent key documents from being used against him.

His legal team will argue that his constitutional rights were violated when the Scorpions raided his home as well as that of his attorney in 2005. (Read more...)

FIFA's former marketing partners set for fraud trial

BERNE, Switzerland (Reuters) - A high profile fraud trial starting on Tuesday is set to shed light on the allegedly murky dealings that led to the spectacular collapse of FIFA's former marketing partners ISL.

Six former executives of the defunct firm are facing charges ranging from embezzlement to the falsification of documents. (Read more...)

Nehawu demands suspension

Nelspruit - The National Education, Health and Allied Workers Union (Nehawu) is demanding the immediate suspension of Mpumalanga's sports and culture head Sindisiwe Mjwara after tabling a "dossier" allegedly proving massive tender irregularities, nepotism, tribalism, and mismanagement. (Read more...)

Cape performing better than other provinces

Of the approximately 20 000 cases on the Western Cape's magistrates' and regional court rolls, not even five percent are subject to massive delays, says the province's justice head.

Major advancements in technology and improved co-operation between the Directorate of Public Prosecutions, the departments of correctional services and justice, chief magistrates and the Legal Aid Board are yielding positive results for justice in the province, says justice head Hishaam Mohamed. (Read more...)

Ghana jails 9 Nigerians for fraud

Lagos - Nine Nigerians have been jailed in Ghana for faking e-mails and letters, including one from the Ghanaian president, to dupe a Frenchman out of $185 000, said reports on Sunday. (Read more...)

Zille seeks inquiry into BEE payoffs

THE African National Congress (ANC) said yesterday it had nothing to hide, Democratic Alliance (DA) leader Helen Zille said she would ask Public Protector Lawrence Mushwana to investigate claims of corruption involving ANC front company Chancellor House. (Read more...)

Pay up or I'll sue - Zuma

Jacob Zuma has threatened the Presidency with legal action for the state's "nonsensical" reluctance to continue paying for his corruption trial defence.

But the state attorney's office is adamant that the Presidency will not undertake to pay Zuma's future legal costs, until he provides a detailed account of how he spent the R9-million in legal funding he previously received from the state. (Read more...)

Standard Bank to look into Macozoma deal

Cape Town - Standard Bank will "look into" allegations that one of its non-executive directors, Saki Macozoma, diverted funds from a black economic empowerment deal to the ruling ANC, Ross Lindström, a spokesman for the bank confirmed yesterday. (Read more...)

US opens probe into Countrywide Financial: report

Federal authorities have launched an investigation into Countrywide Financial, the country's largest mortgage lender, for suspected securities fraud, US media reported on Sunday. (Read more...)

Gold Fields hoaxer bust in US

The US Securities and Exchange Commission (SEC) has won a $900 000 (R7 million) judgment against Theodore Roxford, the man who rocked local financial markets last April when he was reported to have put out a hoax bid for Gold Fields under the pseudonym Edward Pastorini. (Read more...)

MPs ‘conspiring with graft suspects’

Home Affairs director-general Mavuso Msimang has accused MPs of “colluding” with suspended employees who face charges of corruption involving the irregular awarding of several multimillion- rand tenders. (Read more...)

Zambia's construction firms blacklisted

Lusaka - Zambian President Levy Mwanawasa Saturday blacklisted dozens of local construction companies for allegedly swindling the government through dubious multi-million contracts, his aide announced. (Read more...)

SA could become a fugitive's paradise

A government bungle has left justice authorities powerless to send some of the world's most wanted fugitives - including an accused child pornography ring operator - back to the countries where they allegedly committed their crimes.

Pretoria High Court Judge Ferdi Preller found that South Africa could not extradite the pair because parliament had failed to enact into law the country's extradition agreement with the US. (Read more...)

New systems to allay passport fears

Government hopes that internal improvements in the Department of Home Affairs (DHA), including new IT systems, will allay Britain's concern over the illegal use of SA passports, a Cabinet spokesperson says.

At the weekly post-Cabinet briefing, in Parliament yesterday, government spokesperson Themba Maseko said: “The Department of Home Affair's new DG (Mavuso Msimang) has put in an extensive plan to ensure the security of passport handling by staff of the department. This includes new IT systems and improved security.” (Read more...)

Fake wedding witness grilled

IN the Port Elizabeth magistrate‘s court yesterday a witness was grilled on whether she was sure she had seen Mohammed Bhat, accused with Port Elizabeth cleric the Rev Mthetheleli Soga, of conducting fake marriages, on the day of her “wedding”.

Magistrate Kenny Cooney asked Lindelwa Tsili if she was sure she had seen Bhat on the day of her “wedding” to a Pakistani man, as one of the witnesses told the court this week she had never seen Bhat before. (Read more...)

New twist in tax scandal

Berlin - German authorities investigating tax evasion by Germans using banks in Liechtenstein have received a new offer of confidential information on accounts held there, officials said on Friday. (Read more...)

Zuma to have his say over papers

AFRICAN National Congress president Jacob Zuma will get a chance to intervene in the arms deal case proceedings now under way in Mauritius. (Read more...)

Obama friend on trial for corruption

A long-time friend and fundraiser of presidential hopeful Barack Obama was accused by prosecutors on Thursday of using his political clout to carry out a kickback scheme aimed at extorting millions from firms trying to do business with the state of Illinois. (Read more...)

Opposition keeps Scorpions in the spotlight

Opposition parties are maintaining pressure on the government over the ANC's controversial decision to disband the Scorpions, using Parliament and an open letter to President Mbeki to keep the issue in the limelight. (Read more...)

Manuel wins corruption gag order

Finance Minister Trevor Manuel has won his High Court bid to stop an activist claiming he is guilty of corruption over the arms deal.

The ruling was handed down on Thursday morning by Cape High Court judge Andre le Grange. (Read more...)

Concourt: Zuma's last stand

African National Congress (ANC) president Jacob Zuma will get a last chance next week to convince a court that potentially damaging evidence seized from him and his lawyer in 2005 should not form part of his corruption trial.

Zuma, his lawyer, Michael Hulley, and French arms company Thint will try to persuade the Constitutional Court that a majority ruling in the state's favour by the Supreme Court of Appeal (SCA) in November last year was wrong. (Read more...)

I wanted to save my job - manager

An SABC sales manager, testifying in a R32-million fraud case involving former Lesedi FM presenter Thuso Motaung, has claimed that pressure from his employers influenced him to make contradicting statements in court. (Read more...)

Mishaps drag out trial for 14 years

One of the longest trials in South Africa's legal history might come to an end after 14 years, if accused Dries Human gets his way.

He has applied to the Pretoria regional court for a permanent stay of prosecution against him in terms of the Criminal Procedure Act. His bid came after crucial evidence against him went missing from a safe at the court.

Human, 52, was arrested on August 28, 1994. He spent six years in jail awaiting trial before he got bail in December 2000. He is accused of being part of a car theft syndicate, facing 136 charges including fraud and car theft. The crimes were allegedly committed between 1992 and 1994. (Read more...)

Syndicate targets taxpayers

Hermanus businessman John Immelman was very nearly the latest victim of a criminal syndicate that uses the South African Revenue Services (SARS) as a cover to elicit large sums of money from unsuspecting people. (Read more...)

Criminal investigation needed into bribe

After considering information that has emerged over the past months regarding the offer of a sub-council chair to former ID councillor Sheval Arendse as an inducement to join the DA by Kent Morkel, then DA Provincial Chair, I have decided to open a criminal investigation into this matter.

On 22nd February I submitted an affidavit at the Rondebosch Police Station setting out the details of the case and why I believe it should be investigated by the SAPS. The investigation has since been moved to the Organised Crime Unit in Bellville, under detective Kenneth Speed. (Read more...)

Testing time in toilet

White River - A driver's licence was issued to a woman who had been hiding in the toilets at the testing site for 20 minutes instead of taking the practical driving test. (Read more...)

After the fall: life moves on for rogue traders

Shortly after Société Générale trader Jérôme Kerviel was accused of racking up a $7.2 billion loss in stock-future trades, Toshihide Iguchi woke from a fitful sleep punctuated by bad dreams.

"I was in the bank again," says Mr. Iguchi, who spent 12 stressful years trying to hide and recoup what became a $1.1 billion trading loss at the New York branch of Daiwa Bank Ltd. in the 1980s and '90s. (Read more...)

Boy band creator to plead guilty

Lou Pearlman, the gregarious mastermind behind boy bands such as 'N Sync and the Backstreet Boys, is set to plead guilty in a $300m fraud scheme. (Read more...)

SIU probes prison IT contracts

Advocate Willie Hofmeyr's Special Investigating Unit (SIU) is probing a range of contracts involving the Department of Correctional Services (DCS). These include IT contracts said to be worth several hundred million rand. (Read more...)

Top police 'lack skills'

Only about 10 percent of commissioners at police stations are adequately trained to head them, a study submitted to the safety and security portfolio committee has revealed. (Read more...)

'Emfuleni is collapsing' - PAC

"We can confidently say that we are seeing the Emfuleni Local Municipality going down," says PAC Regional Chief Whip, Mbuyiselo Gantsu.

On the issue of employees who were suspended from the municipality as reported in last week's edition of Vaal Weekly ("ELM battles enemy within", Vaal Weekly: February 27-March 4, 2008). Gantsu says that they cannot condemn the fight against corruption as long as Emfuleni's case stands in court and there is enough evidence to conclude these cases. "The Mayor and Municipal Manager must also fight other signs of corruption such as nepotism among others," he continues. (Read more...)

Perhaps it's time to abandon cheques...

I've come to the conclusion that fraudsters have made the issuing of cheques far, far too risky.

A few weeks ago I reported how a cheque a Pretoria car repair business posted was intercepted, "washed" of its details and then used to create blank cheques, which were then made out to large amounts and successfully cashed, leaving the business about R40 000 poorer. (Read more...)

Cops’ corruption case on hold

A corruption case involving two police inspectors was postponed in the Johannesburg magistrate’s court yesterday.

Mota, of Johannesburg Central police station, and Sean Thwala, of Booysens police station, face charges of corruption, extortion, fraud, intimidation and defeating the ends of justice.

A key witness, Lindiwe Mthembu, 37, was shot dead in her Johannesburg flat three days before she could testify against the two policemen. (Read more...)

US gives SA flashing light on crime syndicates

A report released yesterday by the US state department described South Africa as "a very vulnerable target for transnational and domestic crime syndicates". It identified as problematic the absence of reported money laundering prosecutions in the country, "despite the fact that a high number of international crime groups operate in South Africa". (Read more...)

'Convicts to be tagged'

The correctional services department is hoping to introduce general electronic monitoring of offenders in 2009/10, officials said on Tuesday. (Read more...)

Samsung chairman’s brother-in-law quizzed in corruption probe

Special prosecutors probing claims of corruption and shady dealings at Samsung Group questioned the brother-in-law of the conglomerate’s chairman today. (Read more...)

Wikileaks champions whistle blowing after US court triumph

The Wikileaks website was championing nameless whistle blowers with renewed vigor on Monday after a US judge ruled efforts to shut down the site violated constitutional rights to free speech. (Read more...)

Disbanding the DSO would be ‘unconstitutional’

The process of disbanding the Scorpions is manifestly fraught with difficulties of an administrative and legal nature which will give the public service numerous structural and labour headaches. The question of constitutional principle which the public administration ought to be addressing first is whether the Scorpions should and can be disbanded at all. The answer, purely as a matter of constitutional principle, would appear to be no. (Read more...)

Students will be prosecuted: Unisa

Twenty-one University of South Africa students are to be prosecuted for presenting fake matric results to the institution, a spokesperson said on Tuesday. (Read more...)

Thuso Motaung's dealings revealed in court

The Johannesburg Commercial Crimes court has heard that Lesedi FM presenter Thuso Motaung and suspended station manager Pula-Pula Mothibi presented the station's management team with a proposal to link a health and nutritional product to the station.

The product Power mix is at the centre of the corruption and fraud trial of suspended Lesedi FM presenters Motaung and co-accused Joseph Ramme. The three are accused of defrauding the SABC of R32 million by allegedly giving excess airtime to a select number of products in which they themselves had a business interest. (Source: SABC)

Fraud case may derail Obama’s campaign trail

BURIED on page 59 of the indictment is a reference to one of many alleged kickbacks on a state contract that appears to have ended up as a R77763 ($10 000) donation to a “political candidate”.

The kickback was allegedly arranged by Antoin “Tony” Rezko, a Syrian immigrant who became a powerful political fixer in Chicago. The “political candidate” who benefited from the R77763 has been identified as Barack Obama, the Democratic contender calling for “change we can believe in” in the presidential race, who is said to be a longtime friend of Rezko. (Read more...)

'Make Scorpions report public'

The government must release the full Khampepe Report on the restructuring of the Scorpions if it wants a credible debate to take place concerning the future of the country's elite crime-fighting unit, the SACP said on Sunday. (Read more...)

'Bogus' land claims official appears in court

A man who allegedly claimed to be a land affairs official has appeared in the Postmasburg magistrate's court for fraud and corruption, the land claims commission said on Monday. (Read more...)

Conrad Black starts jail term for fraud

Disgraced media baron Conrad Black on Monday began his six-and-a-half year prison term imposed for a multi-million dollar fraud and obstruction of justice, prison officials said.

"He reported today to a low security prison in Coleman, Florida," said Mike Truman, spokeman for the Federal Bureau of Prisons. (Read more...)

State accuses Zuma, Thint of cover-up bid

THE state has accused African National Congress (ANC) president Jacob Zuma and French arms company Thint of trying to cover up evidence gathered under disputed warrants. (Read more...)

Tall tale of R500 000 donation that never was

Blade Nzimande was yesterday cleared of wrongdoing in the alleged disappearance of a massive donation to the SA Communist Party. (Read more...)

There's an axe at Whetstone that needs grinding

It seems secret deals are the way to go if you are accused of corporate malfeasance: you avoid public scrutiny and your misdeeds, if proven, remain known to only a handful of people.

It must leave a bitter taste in the mouths of investors who lost out when Jurgens Steenkamp, Michael Lane and Trevor Glaum, the liquidators of Whetstone Industrial Holdings, a venture capital company that went bankrupt, reached a secret deal with the company's former directors. (Read more...)

Audit may give ANC a fund raising headache

The ruling party has employed ANC-speak, its own version of Newspeak, the fictional language used in George Orwell's novel 1984, to cover its traces in relation to its fundraising company Chancellor House. (Read more...)

Shaik stripped of doctorate

Shamim "Chippy" Shaik has been stripped of his doctorate degree from the University of KwaZulu-Natal without reasons, his brother and lawyer Yunis Shaik said on Sunday. (Read more...)

Selebi 'went fishing' in court

Police chief Jackie Selebi's civil court attempts to quash charges against him were no more than a fishing expedition and a calculated attempt to test the strength of the case against him, opponents and analysts charged. (Read more...)

Scorpions boss leads rush to exit

Scorpions boss Leonard McCarthy is set to quit mid-year, apparently to live and work abroad as his unit merges with the police's organised crime unit. (Read more...)

Sars keeps mum over Zuma tax returns

As the National Prosecuting Authority (NPA) was revealing in papers submitted to the Constitutional Court how African National Congress president Jacob Zuma allegedly failed to declare his income to the taxman, the South African Revenue Service (Sars) on Friday was keeping mum. (Read more...)

Zuma: They’re all out to get me

ANC president Jacob Zuma this week came out with guns blazing, stopping short of accusing President Thabo Mbeki of lying and conspiring to prevent him from becoming the country’s next president.

Zuma claims he is being targeted by forces in the ANC and government because of his “pro- poor” political beliefs in a bid to prevent him from becoming president of the country.

These allegations are contained in Zuma’s affidavits lodged before the Supreme Court of Mauritius. (Read more...)