Massive Corruption Web Unravels in Gauteng Department of Social Development

The Gauteng Department of Social Development has been ensnared in a corruption scandal with forensic audits revealing a complex scheme that funneled at least R500 million to for-profit companies through non-profit organizations between 2016 and 2018. The audits, conducted by Bowmans and BDO, have brought to light the malpractices under the supervision of then-director for the sustainable livelihoods programme, July Maphosa, and other implicated officials.\n\nMaphosa, who managed a substantial yearly budget of about R250 million, resigned in 2018 amidst growing allegations after a complaint by Japhta Mookang, a convicted car hijacker linked to several beneficiary organizations. Despite the charges initially laid against Maphosa, they were later dropped, and further investigations into his activities ceased.\n\nThe detailed reports from Bowmans and BDO describe a deliberate evasion of standard supply-chain management protocols, allowing Maphosa and accomplices to appoint suppliers without the required scrutiny. Among the beneficiaries were three companies: Ubonyoninco, Pink Power Trading, and Masinya Trading, all owned by Amanath Soorju, a former HR director at the department. These companies received over R60 million combined under dubious circumstances, linked through directives Maphosa sent to non-profit organizations.\n\nSoorju, who maintained his transactions were legitimate, denied knowledge of Maphosa's direct interventions. Moreover, the investigation uncovered potential personal benefits received by Maphosa, including educational expenses and property dealings tied to Soorju, raising questions about their relationship.\n\nAn even more convoluted part of the scandal involves Morithi Wa Sechaba and Impoqo Trading, directed by Mpumelelo Nhlapo. These entities received significant sums orchestrated by Maphosa, with Morithi Wa Sechaba alone receiving around R109 million for various projects. Despite substantial financial outflows, many projects, such as a Disaster Management mobile app and various supply contracts, lacked evidence of completion or proper use.\n\nThe spider web of corruption extended to other non-profit organizations and their connected for-profit entities, bleeding millions from funds meant for essential services like school uniforms, dignity packs, and food parcels for the underprivileged. Entities such as Kagisano and Godisang Development were implicated, with irregular contracts and unverified payments highlighting a gross mishandling of public funds.\n\nThis grievous misuse of state resources intended for social welfare highlights systemic issues within the department, calling for stringent oversight and accountability mechanisms to protect public funds and ensure they reach the intended recipients.