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Govt official, 2 others accused of fraud, money laundering worth R29m get bail

The trio were arrested and appeared in court on Friday, where they were granted bail.

Court gavel and banknotes. Image: 123rf.com

CAPE TOWN - A former Social Development HOD and two others were this week nabbed for alleged fraud and money laundering to the tune of R29 million in the Eastern Cape.

The trio were arrested and appeared in court on Friday, where they were granted bail.

According to police, during the 2015/2016 financial year, the Eastern Cape Social Development Department set aside over R42 million for capacity building at the National Development Agency in the province.

It's understood former social development boss and current municipal manager at the Sedibeng District Municipality Stanley Khanyile deviated from procurement protocols when appointing a service provider.

He allegedly awarded a contract worth over R14 million to a company called Umnotho Development.

In the following year, procurement processes were allegedly flouted once more when a R15 million tender was awarded to Umnotho Training and Development Trust.

Khanyile, Durban businessman Poovandaren Chetty and Advocate Vuyokazi Sangoni will be back in court in October.

The businesses awarded the tenders are owned by Chetty.

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