Parliament heard explosive findings of billions lost to corruption, fraud and mismanagement within the defence department.
The Special Investigating Unit (SIU) and the Directorate for Priority Crime Investigation, known as the Hawks, have laid bare corruption, fraud and financial mismanagement amounting to billions of rands in the department of defence and military veterans.
SIU head advocate Andy Mothibi told parliament yesterday that the graft-busting unit had uncovered deep-rooted corruption, maladministration, as well as financial mismanagement across the defence portfolio.
Widespread rot in software and Covid contracts
The SIU investigations cover irregular software deals, inflated Covid tenders, illegal drug imports from Cuba and poor governance at Denel.
Among the findings is the R467 million Microsoft licensing scandal, in which the department paid for software that was never used.
According to Mothibi, the contracts with EOH Mthombo and SoftwareOne were awarded without bidding or budget approval.
He said in April, the Special Tribunal declared the R257 million SoftwareOne contract unlawful and ordered the company to repay it.
Inflated tenders and frozen pensions
The SIU also flagged R273.5 million in inflated personal protective equipment tenders during the Covid pandemic.
The probe led to 33 criminal referrals to the National Prosecuting Authority and Hawks, 11 disciplinary referrals and orders to freeze implicated officials’ pensions.
Another scandal involved the R217 million procurement of unapproved Cuban “Heberon” drugs during Covid using funds diverted from other projects. Of the 930 000 imported vials, only 15 were used and the rest were returned.
A civil recovery of R33 million is now underway.
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Collapse of governance at Denel
At the state arms manufacturing entity Denel, SIU investigations exposed the collapse of governance and accountability, particularly in Project Hoefyster and a Chad military vehicle deal involving millions of rands in advance payments unaccounted for.
Mothibi said systemic weaknesses, from poor record-keeping to misuse of official budgets, continued to undermine governance.
“The scale of financial leakage demands urgent accountability. We are moving to ensure recovery, prosecution and systems reform,” he said in his presentation to the portfolio committee on defence.
Hawks probe multimillion-rand fraud cases
Hawks acting head LieutenantGeneral Siphesihle Nkosi presented an equally grim picture, revealing they were investigating 14 corruption and fraud cases involving more than R360 million in potential losses in the department.
“These investigations cut across fraud, corruption, theft and violations of the Public Finance Management Act. Many date back years and involve tampered bids, forged signatures and payments for work never done,” he said.
Among the cases is a R52 million SA Navy tender allegedly manipulated with Tippex.
Military projects and veterans under scrutiny
In another, the SA Navy paid R16 million for engine repairs to the SAS Umzimkulu that were never completed and similar fraud in a R3.8 million project for the SAS Drakensberg.
He said the South African Air Force is under scrutiny for an unauthorised G-Fleet vehicle rental scheme, where state vehicles were allegedly used for private trips.
Another case is the alleged theft of R40 million from the SA National Defence Force’s Group Life Investment Scheme for troops’ benefits.
In the department of military veterans, four probes were underway: a R100 million travel contract allegedly awarded without tender; R43.5 million in irregular procurement and a R135 million training equipment deal.
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