Fraudulent broad-based black economic empowerment certificates and contracts awarded to a father and son have landed them in hot water after the National Prosecuting Authority (NPA) obtained a restraining order.
According to the NPA, the order was granted on April 28 by the high court in Pretoria, however, it was served to the suspects on Thursday.
NPA spokesperson Sindisiwe Seboka said they are seeking to recover R102-million from Kishene Chetty and his father Krishna Chetty who illegally received contracts from the South African Police Service (SAPS).
It is reported that there are 45 people whose assets have been restrained and are facing charges relating to 53 contracts which were unlawfully awarded to 26 companies.
“The state is alleging that companies that are effectively owned and controlled by Chetty and his son were unlawfully awarded contracts by the SAPS,” Seboka said.
“It is alleged that fraudulent broad-based black economic empowerment certificates were submitted in support of written price quotations, and that the 26 companies were involved in cover quoting.”
The NPA said the 45 people include SAPS members who worked in the supply chain management division and colluded with the Chetty family in defrauding the SAPS of millions of rands.
Assets belonging to the 45 people have been restrained, as they are facing charges relating to 53 contracts which were unlawfully awarded to 26 companies.
Seboka said: “The restraint order attempts to recoup any benefit the 45 accused natural persons [including several members of the SAPS], 26 implicated companies may have derived, received, or retained from the two open tenders and 48 contracts awarded pursuant to invitations of written price quotations.
“Written price quotations were sourced from companies that are effectively owned and controlled by Kishene Chetty and his father, but having other people listed as sole directors.
“The accused, cited as defendants, were found by justice Mlotshwa to have acted collusively in making false and fraudulent misrepresentations in their tender bid to the police, as a result two national tenders, valued at R59-million and R29-million plus 48 contracts worth R9.8-million, which fell under the R500 000 threshold, were awarded.
“The R59-million tender was for branding of police vehicles. One of the companies that were awarded contracts has a white woman listed as the sole director, who misrepresented that she was an African female.”
Both the SAPS and the SA Revenue Service allegedly suffered actual financial prejudice, as several of the 26 companies evaded tax.
Advocate Ouma Rabaji-Rasethaba said the accused are facing prosecution and will appear at the Pretoria regional court on December 6.
“The NPA frowns upon such alleged concerted criminality and will continue in the fight to rid government of corruption. We will not hesitate to use our asset recovery powers to reclaim the state,” said Rabaji-Rasethaba.
“The obtaining of the restraint order has been made possible by full cooperation and collaboration between the police, investigative directorate, and asset forfeiture unit.”
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