Businessman allegedly misused state funds to buy Rolex watch, luxury cars

Former Social Development boss and current municipal manager at the Sedibeng District Municipality Stanley Khanyile, Durban businessman Poovandaren Chetty and advocate Vuyokazi Sangoni will be back in court in October.

A view of watches by Swiss watchmaker Rolex. Picture: AFP.

CAPE TOWN - The arrests in connection with a fraud and money laundering case to the tune of R29 million has been hailed as a breakthrough by the Eastern Cape police commissioner.

The former social development HOD and two others recently appeared in court where they were granted bail.

Former Social Development boss and current municipal manager at the Sedibeng District Municipality Stanley Khanyile, Durban businessman Poovandaren Chetty and advocate Vuyokazi Sangoni will be back in court in October.

In the 2015/2016 financial year, the Eastern Cape Social Development Department set aside over R42 million for the construction of a women’s resource development centre.

It's understood Khanyile, in his capacity as HOD, deviated from procurement protocols when appointing a service provider.

He allegedly awarded a contract worth over R14 million to a company called Umnotho Development, owned by Chetty.

In the following year procurement, processes were allegedly flouted once more when a R15 million tender was awarded to a business owned by Chetty.

According to the National Prosecuting Authority, Chetty allegedly misused the funds for personal use, buying a Rolex watch, Ferrari and Porsche vehicles among other things in 2015.

Khanyile has been charged with two counts of contravention of the Public Finance Management Act and two counts of fraud.

Chetty faces 16 counts of fraud, 18 counts of theft, and 15 counts of money laundering, while Sangoni is charged with one count of fraud.

Police spokesperson Tembinkosi Kinana said the anti-corruption wheel of justice has been set in motion.

“It’s embarrassing and disappointing for highly-placed officials who are entrusted with authority… for them not to appreciate the level of trust attached to their positions.”

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