Inside Gauteng’s R500M Corruption Saga: A Maze of Misused Funds and Murky Transactions

The recent revelations from forensic audits conducted by Bowmans and BDO illuminate a deep-seated corruption scheme within the Gauteng Department of Social Development, where funds designated for uplifting the impoverished were grossly misused betwen 2016 and 2018. The ‘sustainable livelihoods’ budget, intended to provide essential services like school uniforms and food parcels, was instead diverted into a labyrinth of fraudulent transactions involving high-profile government officials and private companies.

At the core of this scandal stood July Maphosa, the department's former director for sustainable livelihoods, who oversaw the redirection of at least R500-million to various for-profit entities through nonprofits. These for-profits were often connected to governmental insiders and acted without the requisite checks of a stringent procurement process. Notably, companies like Ubonyoninco, Pink Power Trading, and Masinya Trading, linked to former departmental HR director Amanath Soorju, collectively received over R60 million for supplies that were commission purportedly for public benefit.

Soorju, describing Maphosa as a "friend", defended the transactions as legitimate despite clear conflicts of interest and the dubious routes taken to award these contracts. The situation complicates further with Maphosa’s sudden resignation in 2018, which was closely followed by the withdrawal of all charges against him, leaving many questions unanswered.

Another alarming aspect of this widespread abuse of power is the manipulation of non-profit organisations setup to facilitate these corrupt dealings. Entities like Morithi Wa Sechaba and Kagisano, directed by insiders like Pule Malopo and Peo Boakgomo, were pivotal in maneuvering substantial funds intended for public use into selected private pockets. Invoices, contracts, and email trails outlined in the Bowmans report paint a clear picture of premeditated fraud.

The fall-out from these reports has implicated over thirty officials, hinting at an extensive network of corruption that requires thorough investigation and stringent action. Yet, the actual enforcement of consequences remains minimal, with significant figures such as Maphosa having evaded substantial scrutiny post-resignation.

This scandal not only highlights vital lapses in the government's management and oversight mechanisms but also raises significant concerns about the integrity of those entrusted with the welfare of the public. It’s essential for investigative agencies like the Hawks, now belatedly examining these findings, to press deeper and unravel the full extent and reach of this corruption, ensuring accountability and the re-establishment of public trust in governmental operations.