SIU welcomes prosecution of Eastern Cape businessman and senior education department officials on charges of fraud and corruption
The Special Investigating Unit (SIU) welcomes the prosecution of five individuals linked to the 2014 procurement of learner/ teacher supplementary resource material by the Eastern Cape Department of Education to the value of R59 million from an entity named the Siegesmund Trust.
Businessman Johannes Hermanus Bouwer Smith, former Head of Department: Mthunywa Lawrence Ngonzo, former Chief Education Specialist: Noxolo Valencia Gwarube, together with the current Deputy Director General: Raymond Tywakadi (who was the Acting Superintendent-General/head of Department at the time of the offences), and current Deputy Director IT support services in the education department Tyronne Fourie appeared in the East London Magistrates Court on Monday on charges of corruption, fraud, attempted fraud, theft and contravention of the Public Finance Management Act. They were released on R5000 bail each and the matter was postponed to 8 July 2021 for copies of the docket and to allow for Tywakadi’s legal representative to be confirmed.
The prosecution by the National Prosecuting Authority (NPA) follows an intensive investigation conducted by the SIU in the Eastern Cape Education Department which uncovered evidence pointing to criminal action and in particular corruption against the five accused. The evidence as required by SIU Act, was referred to the NPA and also to the Directorate for Priority Crimes Investigation (Hawks) for further attention.
The SIU is working closely with the NPA and Hawks in this regard and we will continue to work together to ensure that all role players identified through our investigations in the alleged crimes are held accountable.
The SIU also made six disciplinary referrals against education department officials, including the Acting Head of Department at the time. The Department confirmed to the SIU that disciplinary action against four officials has commenced.
In 2015 the SIU was directed in terms of Proclamation R598 of 2015, to investigate the procurement of or contracting for services by the education department and payments that were made in respect thereof. The SIU investigation uncovered that the goods were procured unlawfully and/or irregularly, in contravention of the provisions of the Department’s Supply Chain Management policy, in contravention of sections of the Preferential Procurement Policy Framework Act No.5 of 2000, and in contravention of section 217(1) of the Constitution of the Republic of South Africa, 1996.
The SIU investigation further revealed that the Siegesmund Trust had delivered the resource material as per the terms of the irregular contract which has since been reviewed and set aside. As result, the SIU calculated the profit earned from the procurement contract and demanded it be paid back. Civil litigation was instituted by the SIU in the Grahamstown High Court to recover the monies. The trustees of Siegesmund Trust agreed to pay back R3 million in three instalments plus interest and the agreement was made an order of the Grahamstown High Court in March this year.
Source: Government of South Africa