R500 Million Betrayal: Hawks Probe Vast Fraud Within the South African Navy

The elite Hawks investigative unit is unraveling a web of alleged corruption within the South African Navy so extensive it totals nearly half a billion rand. The five major cases, presented to Parliament’s defence committee, paint a picture of brazen fraud, forged documents, and payments for phantom work, raising serious questions about the integrity of the fleet’s operational readiness.

The cases, some dating back to 2009, were only handed to the Hawks after investigations by military police were seemingly stonewalled. Deputy Police Minister Polly Boshielo revealed to MPs that military police faced long delays and a refusal to cooperate from military officers, forcing the handover to an external body.

A Catalogue of Alleged Schemes

The scale of the alleged corruption is vast, touching critical maintenance and supply chains:

• The R52 Million “Tipp-Ex Tender”: In a case of astonishing audacity, a contract for vessel maintenance was allegedly awarded after bid documents were tampered with using Tipp-Ex. Amounts were altered and signatures forged to irregularly appoint a service provider.

• The R395 Million Sub-Standard Spares Scandal: In what is potentially the largest single case, a service provider is accused of supplying the Navy with sub-standard parts for surface and submarine vessels. The company allegedly claimed the spares were procured in Germany while they were, in fact, sourced locally, pocketing the massive price difference on the R395 million contract.

• The SAS Umzimkhulu Phantom Repairs: The minesweeper SAS Umzimkhulu is at the center of two separate scandals. In one, a service provider was paid R30 million for engine repairs between 2016 and 2018 after allegedly submitting a false testing certificate from a different vessel, the SAS Umhloti. An internal investigation found the work was never done, leaving the vessel unserviceable. In a second case, the same service provider was paid a further R16 million for work that was never performed.

A Single Company in the Crosshairs

Multiple allegations point to a single Cape Town-based company, GRIMMS. The company is implicated in the R30 million and R16 million Umzimkhulu cases, as well as a separate R3.8 million case involving phantom engine repairs on the SAS Drakensberg in 2021, where invoices were paid without a completion certificate.

GRIMMS founder Shafiek Hendricks has previously dismissed the allegations. The Hawks’ investigations into all these matters are ongoing, with dozens of witness statements being collected.

For the South African Navy, these are not just financial scandals. They represent a direct assault on its operational capability, suggesting that funds meant for maintaining the country’s maritime defence were siphoned off, potentially leaving vital vessels dead in the water. The R500 million question is not just who profited, but who allowed it to happen.

{Source: Timeslive}

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