BCM CFO found guilty in Mandela funeral fraud scandal – report

The chief financial officer (CFO) of the Buffalo City Metro (BCM) Vincent Pillay, who is on suspension, has reportedly been found guilty by an internal disciplinary hearing of “financial misconduct” for his involvement in the Nelson Mandela memorial service scandal.

The Dispatch reports that Pillay was found guilty of approving a R10 million payment in 2013 meant for memorial service events for former president Nelson Mandela in December 2013.

Those suspected of attempting to defraud the metro managed, however, to only transfer R5.9 million of the R10 million they had targeted.

The rest of the amount (R4.1 million) was blocked by then municipal manager Andile Fani, who was on leave when the original decision was taken. Fani then instituted an investigation which uncovered the scandal.

The internal disciplinary hearing reportedly found Pillay guilty on two counts of financial misconduct for his role in the R10 million Mandela memorial scandal.

The money, which was intended to fund transportation for mourners attending the late former president’s memorial, was reportedly paid into a company owned by local businessman Mzwandile Sokwali.

Sokwali has reportedly been found guilty of fraud for his role in the matter.

While the metro reportedly initiated the hearing in April this year, a case of fraud and theft with eleven accused in the scandal is before the court.

The accused include former Buffalo City Metro executive mayor Zukiswa Ncitha, her former deputy Themba Tinta; councillors Sindiswa Gomba, Luleka Simon-Ndzele, Ondela Mahlangu; a director at the mayor’s office; former African National Congress (ANC) regional leader Pumlani Mkolo; and business people Nosiphiwo Mati, Zintle Nkuhlu, Viwe Vazi and Dean Fanoe, who along with their companies are facing charges of fraud, corruption, and money laundering.

READ MORE: Mandela funeral fraud scandal accused back in court

The East London-based newspaper reports that Pillay was placed on suspension alongside the metro’s head of supply chain Thembelani Sali and the head of special programmes Ondela Mahlangu.

The hearing was reportedly chaired by L. Vermaak who said in his judgement that Pillay was found guilty of financial misconduct for how he had “grossly negligently breached” his “fiduciary duty” to the metro and “failed to perform the functions of” the office of the CFO “with due care, diligence, good faith, and honesty and failed to act in the best interest of the municipality”.

Vermaak was quoted as saying in his judgement that Pillay caused the metro’s supply chain management (SCM) unit to follow procurement processes that are not in accordance with the requirements of the SCM processes.

The hearing’s chair reportedly said the former ANC regional leader Mkolo and deputy regional leader Mkhawuleli Maleki had instructed Pillay to pay Sokwali’s company Victory Ticket.

However, the publication reports that Maleki denies having instructed Pillay to pay Sokwali’s company and that he had not seen Vermaak’s judgement.

Vermaak also found Pillay guilty of complying with instructions from the ANC, the hearing’s chair saying the suspended BCM CFO had acted in the interest of the party without having regarded those of the metro.

Pillay reportedly has until tomorrow, October 30, to submit mitigation and aggravating circumstances.

Pillay told the newspaper on Sunday that he did not know of the hearing’s judgment so far and that he would appeal it, adding that he was being blamed for the wrongdoings of others for reasons of expediency.

(Compiled by Makhosandile Zulu)

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