Tax evasion and fraud accused Kishene Chetty.
PHOTO: Supplied
- A father and son duo, along with other accused, were allegedly illegally awarded R102 million in police contracts.
- The NPA’s Asset Forfeiture Unit was granted a R102 million restraint order at the end of last month to recover the money.
- The restraint order was served on the defendants on Thursday.
The National Prosecuting Authority (NPA) is seeking to recover R102 million from a father and son duo, as well as other individuals accused of being illegally awarded police contracts.
The NPA’s Asset Forfeiture Unit (AFU) was granted a restraint order on 28 April, and it was served on the group on Thursday, according to the Independent Police Investigative Directorate (IPID).
IPID spokesperson Sindisiwe Seboka said 45 suspects, whose assets have been restrained, faced charges relating to 53 contracts unlawfully awarded to 26 companies.
READ | The NPA says cops are opening ‘frivolous’ cases against officials investigating SAPS tenders
“The State is alleging that companies effectively owned and controlled by Kishene Chetty and his father, Krishna Chetty, were unlawfully awarded contracts by the SAPS,” Seboka added.
It is alleged that fraudulent broad-based black economic empowerment certificates were submitted in support of written price quotations and that 26 companies were involved in cover quoting.
Police supply chain management division members allegedly conspired with the Chetty family and defrauded the police of tens of millions of rands.
Some of the assets seized by the NPA’s Asset Forfeiture Unit.
Supplied PHOTO: Supplied
Some of the assets seized by the NPA’s Asset Forfeiture Unit.
Supplied PHOTO: Supplied
The Gauteng High Court in Pretoria granted the restraint order last month.
The accused and those who claim to have interest in the restrained property, cited as respondents, were called to show cause on the return date and explain why the order should not be made final.
“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,” said Seboka.
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.
Some of the assets seized by the NPA’s asset forfeiture unit.
Supplied PHOTO: Supplied
Some of the assets seized by the NPA’s Asset Forfeiture Unit.
Supplied PHOTO: Supplied
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 apparently awarded.
The R59 million tender was for the 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,” Seboka added.
READ | Corruption-accused businessman Kishene Chetty faces fresh fraud, tax evasion case
The company, Vatika, was 100% white female-owned and did not meet the requirements to be exempted as a micro-enterprise because it had, at the time, an annual total revenue of more than R38 million for the year 2018.
The police and SA Revenue Service (SARS) allegedly suffered financial prejudice.
Several of the 26 companies were registered as VAT vendors, but misrepresented to the police that they were “not VAT vendors”.
IPID said the accused were facing prosecution and would appear again in the Pretoria Regional Court on 6 December 2023.
“The NPA frowns upon such alleged concerted criminality and will continue in the fight to rid [the] government of corruption,” Seboka added.
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