How SIU probe uncovered R1.35 million land restitution fraud - IOL

The Special Investigating Unit says its probe into a Mpumalanga land restitution project uncovered alleged irregular procurement and misuse of funds meant to provide equipment to beneficiaries.

An investigation by the Special Investigating Unit (SIU) has uncovered alleged procurement manipulation and misuse of more than R1.35 million meant to equip a Mpumalanga land restitution community, with investigators finding that some goods were never delivered and public funds were allegedly used for the personal benefit of officials.

The investigation centres on the Ingogo Communal Property Association (CPA) land restitution project and has already resulted in a criminal conviction and several arrests.

SIU spokesperson Selby Makgotho said investigators found that the community was excluded from the process of sourcing and appointing the company contracted to provide equipment needed to develop its farm.

“The beneficiaries were also not involved in the sourcing or appointment of the service provider, resulting in no value for money being obtained,” Makgotho said.

The investigation was conducted under Proclamation R53 of 2012, which authorised the SIU to investigate the affairs of the Department of Rural Development and Land Reform.

The Ingogo CPA had successfully lodged a land restitution claim covering portions of the farm Barneveld 16 IT and Portion 5 of the farm Buffelspruit in Mpumalanga.

To turn the restored land into a viable business operation, the community required equipment including tractors, a 4x4 single-cab bakkie, trailers, a grass cutter, firefighting equipment, protective clothing and a generator.

MPG Mash Trading CC was appointed to supply the equipment, with R1,358,640 approved for the project.

However, according to the SIU, the appointment was irregular.

Former department Deputy Director of Finance Grace Mokoka allegedly approved a R1,358,440 payment to the company despite required procurement processes allegedly not being followed.

Makgotho said some of the equipment was never delivered to the beneficiaries, while other items were only partially delivered.

The investigation also uncovered allegations that officials obtained quotations from people they personally knew.

“The SIU investigation further established that quotations were sourced by officials from personal acquaintances and that funds paid by the department to the service provider were allegedly used for the personal benefit of certain officials,” Makgotho said.

The SIU said it found no evidence that the company was appointed through a fair, equitable, transparent, competitive and cost-effective procurement process as required by Section 217 of the Constitution.

Investigators also found that MPG Mash Trading allegedly claimed R166,850 in VAT from the department but failed to pay the money to the South African Revenue Service (SARS), while inactive VAT numbers were allegedly used.

The investigation has subsequently resulted in criminal proceedings against several people linked to the project.

MPG Mash Trading director Mduduzi Mashwama was found guilty by the Nelspruit Commercial Crime Court in 2024 of theft and contravening the Prevention of Organised Crime Act in connection with fraudulent VAT claims and the unlawful receipt of refunds totalling R166,850.

He received wholly suspended sentences and was ordered to repay SARS R166,850 in monthly instalments of R500.

The SIU further found that Mashwama allegedly submitted the invoice after being approached by Sikhumbuzo Nkosi, who had been appointed project manager by departmental project officer Godfrey Mchunu.

Mchunu and Nkosi were arrested in connection with the matter in 2025.

Mokoka, 50, appeared in the Nelspruit Magistrate’s Court on Tuesday. She was granted R1,000 bail and is due back in court on October 26.

Makgotho said the unit continued to work with the Hawks and National Prosecuting Authority to pursue criminal accountability arising from its investigations.

“The SIU continues to work closely with law enforcement partners, including the Hawks and the National Prosecuting Authority, to ensure that perpetrators of corruption face the full might of the law,” he said.

“These developments reaffirm the commitment of law enforcement agencies to protecting public funds and promoting accountability.”