KEY POINTS
- Khumalo pleaded guilty to fraud and money laundering charges.
- He and Mkhize stole R1.5 million through fake tenders.
- The court sentenced Khumalo to 15 years in prison.
Khumalo entered a guilty plea to eight charges of fraud and fourteen counts of money laundering, according to Natasha Kara, regional spokesman for the National Prosecuting Authority (NPA).
Fraud scheme uncovered at the Department of Agriculture
For the fraud charges, Khumalo received a 15-year prison term, and for money laundering, he received a 10-year sentence. He will serve an effective 15-year sentence because the penalties will run concurrently,” Kara stated.
She claimed that Khumalo received and transferred the money through Khumzi Business Solutions and Ubhaqa Lwethu Services Resources Development, two businesses with which he was associated.
According to Khumalo’s plea, he met Nkosinathi Emmanuel Mkhize, his co-accused, at the Department of Agriculture’s (DOA) Cedara, Hilton, near Pietermaritzburg, in 2012. Mkhize was employed in the DOA’s supply chain management department in the logistics division at the time. Mkhize entered a guilty plea in December 2020 and was given a 16-year prison sentence.
According to Iol, he often went to the DOA offices in 2012 to look for announcements of tenders. He met Mkhize, who said he had the power to draft and approve tender contracts and was in charge of a sizable budget.
Mkhize said that if they collaborated, they could earn a substantial sum of money, according to Khumalo. The two conspired, and Mkhize fabricated paperwork to give the appearance that Khumalo’s businesses had been awarded a contract for services to the DOA. After Khumalo submitted invoices, the DOA made a payment of almost R1.5 million.
Nevertheless, neither Ubhaqa nor Khumzi rendered any services in exchange for the money they were paid. Khumalo shifted the money from the DOA into his personal account after it had been put into the bank accounts of the firms.Â
The DOA’s chief financial officer provided testimony regarding the financial damage incurred as a result of the offenses, which prosecutor Advocate Ranjini Govender used as evidence at sentencing.
“The DOA subsidizes farmers who raise livestock and grow produce, which eventually reaches households, so these offenses hurt the department’s work.” Food shortages result from the need to import additional goods due to the financial loss, the official stated.
Authorities remain committed to fighting corruption and commercial crime
“The conviction and punishment are welcomed by the NPA. Fighting commercial crimes is still a priority for the NPA and the Directorate for Priority Crime Investigation (DPCI),” Kara stated.
The DPCI’s provincial head, Maj. Gen. (Dr.) Lesetja Senona, gave the investigation and prosecution teams high marks.
“This sentence demonstrates the DPCI and the NPA’s determination to combat corruption and fraud in our nation,” he stated.
