Former KwaZulu-Natal treasurer Sipho Shabalala has been found guilty of corruption, fraud, money laundering and contravening the Public Finance Management Act relating to his role in the “amigos case” involving the award of a contract for the supply of water purification plants in return for “sweetener”.
While Shabalala is scheduled for sentencing in September, his wife, Beatrice Shabalala’s charges of money laundering was dropped on Tuesday, 14 June, by Durban High Court judge Dhaya Pillay.
The first arrests in the “amigos case”- which was named because that is how some of the accused referred to each other in the correspondence- were made in 2010. When the case started there were accused, including prominent ANC heavyweights Mike Mabuyakhulu and Peggy Nkonyeni.
As the case progressed charges were dropped against both Mabuyakhulu and Nkonyeni, along with other accused members. When the case began there were 23 accused people, but charges were dropped against them the accused within ten years.
The Amigos case follows the acquirement of a contract for the supply of water purification plants in exchange with “sweeteners”. The contracts were offered to businessman Gaston Savoi’s Intaka Holdings.
While it was alleged Savoi paid more than R1 million into then attorney Sandile Kuboni’s trust account as a “donation” to the African National Congress (ANC) as a token of appreciation for contracts worth R144 million, it emerged in evidence during Shabalala’s trial that some of the money was used to pay expenses related to a farm owned by Shabalala and Blue Serenity, a Shabalala entity that owned a hotel in Pietermaritzburg.
The Asset Forfeiture Unit repossessed Shabalala’s assets before he was arrested. The value of the assets was reported to be worth more than R5 million at the time. Savoi, Kuboni and others are facing criminal charges. Their trial is on hold because Savoi is challenging the constitutionality of the Prevention of Organised Crime Act and another for permanent stay of prosecution.
Source: News24, Times Live, The South African, image from Times Live: Sandile Ndlovu