North Gauteng High Court- On 9 September 2014 the Asset Forfeiture Unit (AFU) of the NPA obtained a freezing order for R2 257 200 in terms of the Prevention of Organised Crime Act against Mr Paseka Cornelius Letsatsi,a former head of communications of the South African Social Security Agency (SASSA),Mr Surprise Kabedi Ramosa and Mr Puleng Peter Mabe.
This order prohibits them from dealing in their property, and appointed a curator to attach their assets. The order is part of the ongoing work of the Anti-corruption Task Team set up by Cabinet in July 2010 to deal more effectively with large corruption cases. It consists of the Hawks, the NPA and the Special Investigating Unit (SIU). In court papers the NPA submitted that Mr Letsatsi, Mr Ramosa and Mr Mabe committed fraud and/or theft in that money from the SASSA and/or the Social Responsibility Fund account (commonly known as the RDP Fund) was paid to entities that did not qualify for funding. Investigations revealed that Me Fezikile Makiwane, who was the CEO of the SASSA at time, and Mr Letsatsi did not follow the prescribed procedures and/or guidelines regulating payments from the RDP Fund in that no proposals were submitted prior to instructions for payment and no projects were registered.
The NPA submitted that Mr Letsatsi sent a letter to the SASSA on 27 August 2008 that purported to be on the letterhead of the Consolidated Future Growth and Investments Foundation (the CFGI) and was signed by Mr Mapetsana Donald Magaoga, a trustee of the CFGI. Mr Magaoga is also a former director of Bollando Investment Holdings (Pty) Ltd. In this letter, the Progressive Young Women’s Cooperative (the PYWC) was introduced as a trust established by young woman to facilitate community development through outreach programs and empowerment initiatives. In the letter it was also stated that it worked with a number of service providers and that these service providers had to be paid directly. Investigations revealed that these service providers are Consolidated Communication Investment Holdings (Pty) Ltd (Comvest), Bollando and Surprise SK Investments CC (Surprise SK).
Attached to the letter of CFGI were 3 invoices for payment, namely, R627 000 to Comvest, R775 200 to Bollando and R855 000 to Surprise SK. Mr Makiwane approved the payments and a memorandum was sent to Cash Paymaster Services (CPS) to make the above payments. CPS is one of the entities that administer social grant payments on behalf of the SASSA.
The amounts were paid on 17 September 2008 and 26 November 2008 even though these entities did not render any services to either the CFGI or the PYWC. Afterwards, money was transferred not only between these accounts, but also into the account of KG Project Management (Pty) Ltd of which Mr Mabe is the only signatory.