Case postponed as former Eastern Cape officials face fraud, theft, and money laundering charges

 

Former Cogta head of department Stanley Khanyile, along with two others, appeared at the King Williams Town Magistrate Court for charges in connection with contravening the public finance management act, fraud, theft and money laundering involving more than R29 million Image: FILE

Two former Eastern Cape government officials and a businessman accused of fraud, theft and money laundering worth R29 million have had their matter postponed.

Former Department of social development officials Stanley Khanyile, Vuyokazi Sogoni and KZN businessman Poovandaren Chetty appeared at the King William’s Town Magistrate Court for charges in connection with contravening the public finance management act, fraud, theft and money laundering involving more than R29 million.

Khanyile was on Friday granted bail of R50, 000, Chetty was granted bail of R200, 000, while Sogoni was granted R20, 000 bail. The three were arrested on Thursday in a joint operation conducted by the Hawks Anti Corruption Task Team and Saps crime intelligence department. According to Investigation officer Nuwal Jacob’s, During the 2015 – 16 financial year the department of social development set aside R42m for capacity building by the National Development Agency in the Eastern Cape.

Jacob’s said on June 15, 2015 and without prior warning and without having first involved supply chain management in the awarding of the contract, Khanyile, who was at the time the departments accounting officer signed a service level agreement to Chetty’s Umnotho Development company and appointed the company by deviating from normal procument processes.

All three suspects told Magistrate Nkosinathi Mjekula that they would plead not guilty.

Mjekuka held that they were not at flight risk and would not interfere with witnesses. He set strict bail conditions and postponed the matter to October 16 for further investigations.

By Bhongo Jacob – DispatchLIVE

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