S.Africa: Corruption: Officials steal R150 million from Municipality

Five executives accused of defrauding a municipality of more than R150-million have been freed on bail.

This was done on Tuesday despite fears by the Scorpions that they will interfere with their investigation into fraud and corruption at the municipality.

Mangaung (Free State) executive mayor Pappie Mokoena, city manager Mojalefa Matlole and Jacob Thithi, Mokoena's political advisor, were granted bail of R30 000 each.

Mangaung local municipality chief operating officer Mzwandile Silwana and speaker Zongezile Zumane were freed on bail of R20 000.

Mokoena's wife, Granny, who was arrested with the five on Monday, was also granted bail of R30 000.

The six face charges of fraud and theft, corruption, contravening the Prevention of Organised Crime Act and contravening the Local Government Municipal Systems Act, arising from the Scorpions' six month investigation into fraud and corruption involving more than R150-million.

Jacob Sithole, chief investigating officer of the Scorpions, whom the state called to testify why the bail amount should be kept at R100 000, said some of the accused were already proving a risk to the investigations as they were intimidating state witnesses.

Sithole said investigators had identified 16 state witnesses and had taken affidavits from them.

"In particular, Mokoena and Matlole pose the biggest risk as they have already been applying 'tactics' to get witnesses to tell them what they, the witnesses, have already told us," Sithole said.

The state had originally asked for bail to be set at R500 000 for each accused, however this was dropped on Monday to R100 000, which the defence argued was still excessive.

Sithole said the R100 000 bail amount set was "a slap in our faces" because the charges the accused faced included Schedule 5 offences.

Defence attorney Johan Nel, acting for all the accused except Thithi, who is being represented by Ronnie Bokwa, said his clients were "not paupers".

"They do have assets and property but to be able to dispose of them at short notice is impossible," Nel said.

Nel provided the court with the accuseds' monthly income as well as their expenses.

"As you can see, your worship, many of them are basically just making it."

Nel also told the court his clients had managed to secure a bank-guaranteed cheque from Absa. Matlole and Zumane, he said, would be able to pay R10 000 while R20 000 would be loaned to them by friends.

Magistrate Greyvenstein said the accused were affluent by Bloemfontein standards.

"I must make it clear that the allegations are serious and I am asking you not have any contact with the state witnesses."

The accused will appear again on August 4.

This article was originally published on page 2 of The Star on July 27, 2005

Source: Independent Online (IOL)

URL: http://www.iol.co.za/index.php?set_id=1&click...