R54 Million Fraud Case Against Former Police Commissioner Delayed

The R54 million fraud case involving former police commissioner Phahlane was postponed by the Pretoria Specialized Commercial Crime Court.

In order to facilitate disclosure and transfer to the Pretoria Regional Court, the R54 million fraud and corruption case against former acting police commissioner Khomotso Phahlane and his co-accused has been rescheduled by the Pretoria Specialized Commercial Crime Court for July 3.

Furthermore, by May 17th, one defense attorney will receive a pending document from the state.

In relation to two contracts worth roughly R54 million, Phahlane, Lieutenant-Colonel Godfrey Mahwayi, Major-General Maanda Obert Nemutandzhela, Major-General Mankosana Agnes Makhele, and businessmen Inbanathan Kistiah and Avendra Naidoo are accused of fraud, corruption, theft, and violating the Public Finance Management Act (PFMA).

Former police commissioner Phahlane and his co-defendants are facing charges of fraud.
Allegations are made in the case that Phahlane and his co-accused were involved in unlawful procurement operations related to the disturbance, which dates back to October 2015 during the #FeesMustFall protests.

It is specifically stated that software tools like RIPJAR and Daedalus, which are meant for monitoring social media and encrypting conversations, were hurriedly acquired by the Crime Intelligence Division of the South African Police Service (SAPS).

Henry Mamothame, the Investigating Directorate’s spokesman, claims that the court procedures revealed the dubious conditions surrounding the contract awards, citing claims of conspiracy and favoritism between the defendants and related businesses.

Interestingly, it turned out that a company that specialized in security alarms and surveillance cameras—rather than software engineering—was engaged in the acquisition of the RIPJAR program. This information sparked allegations of inappropriate influence and covert quotes in the procurement process.

PROCUREMENT OF DAEDALUS SOFTWARE RAISES QUESTIONS

In addition, the acquisition of the Daedalus program presented more issues because it was hastened by going outside of the established procurement process.

According to Mamothame, “an additional mobile communication encryption program called Daedalus was obtained by deviating from standard procurement procedures. The contract was signed the same day, and payment was made the day after approval. Daedalus was only used for encrypting calls and erasing cellphone records and messages.”

“During the period when Phahlane was being investigated by IPID for the “Blue Lights” police tender and other irregular procurement, the software was also utilized to encrypt voice calls made by SAPS management,” according to the statement.

Accused was granted bail despite grave accusations.
Even though the fraud accusations are serious, all of the accused are free on bond and are scheduled to appear in court again on July 3rd, when the case is scheduled to reopen.