Following this discovery, the matter was reported to the police, who alerted the Financial Intelligence Centre (FIC).
It is understood that after receiving the funds, Mchunu transferred portions of the money into other bank accounts held by himself, stokvel accounts and bank accounts of other individuals.
Ngwema said: “The transfer of the funds into the aforementioned accounts was done in an attempt to disguise the origin of the funds. Police are continuing with investigations into allegations of fraud, theft and money laundering.”
He said the Asset Forfeiture Unit (AFU) applied for and was granted a preservation order to freeze bank accounts linked to Mchunu in the high court in Pretoria.
“The operation is a direct product of the ‘Fusion Centre’ which was established, among other things, as an urgent intervention to address unlawful activities related to Covid–19 relief funds.”
BY ORRIN SINGH