SAPS R54 Million Corruption Case Postponed as Company Ceases to Exist

Trial Postponed as Charges Against Company Withdrawn

The ongoing case in the High Court in Pretoria was postponed following a request from the State to amend charges. This decision comes after the prosecution discovered that one of the companies at the centre of the case had legally ceased to exist.

Henry Mamothame, spokesperson for the Investigating Directorate Against Corruption (IDAC), explained,

“The new prosecution team became aware that the company ceased to exist, prompting the withdrawal of charges against it. Its director remains an accused in his personal capacity in the matter.”

Details of the Corruption Case

The case relates to two police contracts, both collectively valued at around R54 million, which the State alleges were tainted by irregular procurement procedures. The contracts concern software systems for police monitoring, with the transactions occurring during Phahlane’s time as acting national commissioner.

• The accused individuals include Khomotso Phahlane, Lieutenant-Colonel Godfrey Mahwayi, Major-General Maanda Obert Nemutandzhela, Major-General Mankosana Agnes Makhele, and businessmen Inbanathan Kistiah and Avendra Naidoo.
• They face charges of fraud, corruption, theft, and contravention of the Public Finance Management Act (PFMA) relating to the two software contracts.

Two Software Contracts Under Scrutiny

According to Mamothame, one of the contracts involves the procurement of software known as RIPJAR, which was reportedly slated for use during the October 2015 #FeesMustFall student protests. The second contract pertains to the procurement of an encryption software system named Daedalus.

The State alleges the encryption software was used to secure communication, delete call records, and wipe messages at a period when Phahlane was under investigation by the Independent Police Investigative Directorate (IPID). This probe was part of a broader inquiry into the “Blue Lights” police tender and other alleged procurement irregularities under his leadership.

Recent Developments and Related Cases

The State’s move to withdraw charges from the now-defunct company illustrates the evolving nature of the case and has led to a postponement of court proceedings until November 12. This pause allows the prosecution team to amend and clarify the charges against the remaining accused.

Parallel to this, the IDAC has also provisionally withdrawn another case involving Phahlane and his co-accused, which related to a R191-million SAPS contract for emergency-warning equipment dating to 2016. While approximately R65 million was paid out under that contract, investigators intervened to halt an additional R22 million payment. IDAC emphasized that these allegations have not yet been established as fact and the provisional withdrawal is not a finding of fabrication.

Impact on SAPS Leadership and Ongoing Proceedings

Phahlane’s tenure and career have come under scrutiny due to these allegations. He was dismissed from the South African Police Service (SAPS) in July 2020 after internal disciplinary proceedings found him guilty of dishonest conduct and bringing the SAPS into disrepute, especially relating to procurement processes during his earlier role as head of forensic services.

Once regarded as an influential figure within SAPS leadership, Phahlane’s professional life has since been overshadowed by multiple legal proceedings and corruption allegations.

Looking Ahead

The postponement provides the State the necessary time to adapt its case to the change in the roster of accused entities, particularly ensuring the prosecution continues despite the liquidation of the company. Proceedings are expected to resume on November 12, when the amended charges will be formally presented to the High Court in Pretoria.

This case forms part of broader national efforts to ensure accountability and transparency in public procurement within law enforcement agencies. As legal processes unfold, public attention remains focused on the outcomes and broader implications for anti-corruption efforts within the SAPS.