Buffalo City mayor among shock arrests
[caption id="attachment_37416" align="alignright" width="405"] IN THE DOCK: Appearing in the East London Magistrate's Court yesterday are, from left, Buffalo City Metro mayor Zukiswa Ncitha, ANC regional secretary Pumlani Mkolo, BCM councillor Sindiswa Gomba and BCM speaker Luleka Simon-Ndzele. Inset: BCM deputy mayor Themba Tinta has also been charged. Pictures: MARK ANDREWS[/caption]
ANC heavyweights in the Buffalo City Metro (BCM), including the mayor and deputy mayor, were arrested yesterday and charged with money laundering and fraud.
The charges relate to illegal payments made from money meant for Nelson Mandela memorial services.
Those arrested include mayor Zukiswa Ncitha, deputy mayor Themba Tinta, council speaker Luleka Simon-Ndzele, ANC regional secretary Pumlani Mkolo and senior councillor Sindiswa Gomba.
The arrests follow a two- month investigation by the Hawks.
The five powerful politicians handed themselves over to the elite police unit after being instructed to do so yesterday morning.
Ncitha cut short her participation in a government lekgotla in East London – an important meeting ahead of the provincial state of the province address on Friday by premier Phumulo Masualle.
They appeared in the East London Magistrate's Court alongside Ondela Mahlangu, director in the office of the mayor, and businesswoman Viwe Vazi.
Their charges were also added to those of East London taxi boss Mzwandile Sokwali and Blanche Boti, who have previously appeared in court in connection with the alleged fraud.
The BCM paid about R5.9-million to Sokwali's company, Victory Ticket CC, to ferry mourners to memorial services in the city after Mandela's death in December.
Two other people allegedly implicated in the memorial services saga – Mantella Trading 522cc owner Dean William Fanoe and Johannesburg lawyer Zintle Nkuhlu – were not in court although their names appeared on the charge sheet.
A sum of R1.38-million was given to Mantella Trading for T-shirts bearing Mandela's face.
A further R899000 was given to Vazi's company, Forty Wing.
It also emerged later that Mkolo's girlfriend, Nkuhlu, received R350000 from the funds through the Lily Rose Trust which she co-owns with Sibongile Luthuli.
The ANC appeared to be scrambling yesterday for a coherent response to the high-profile arrests.
Provincial spokesman Mlibo Qoboshiyane called on ANC members to allow the court process to follow its course. "We stand by our initial position that all ANC members who might have information on this matter are urged to cooperate fully with the law enforcement agencies investigating this matter ... to get to the bottom of this matter," he said.
The case followed an investigation by The Herald's sister paper, the Daily Dispatch, which revealed that funds earmarked for Mandela memorial services found their way into the bank accounts of a number of business people, including some close to regional politicians.
The dramatic events started yesterday when Simon-Ndzele arrived at the Hawks office at about 9am. She was immediately followed by Mahlangu and, minutes later, Tinta. Gomba slipped in unnoticed with a woman friend, followed by Ncitha, Mkolo and Vazi shortly after lunch.
The magistrate's courts were abuzz in anticipation of the politicians' appearance. Shortly after the lunch break, most of the lawyers representing the accused were lined up in court, waiting for prosecutor Diniso Ketani to arrive.
The brief hearing eventually got under way after 3pm, following negotiations between the prosecutor and lawyers.
Ketani wanted bail set at R100000 for each of the accused, but the lawyers argued that it was excessive and tantamount to refusing bail altogether.
Acting magistrate Leon Kemp was concerned that any delays in finalising the hearing beyond the end of the business day would make bail meaningless because there would be no officials in the clerk of the court's office to process the payments.
He eventually set bail at R10000 for each new accused, except Vazi, whose bail was set at R5000.
Hawks spokesman Paul Ramaloko said further arrests could be expected.
"All those who benefited from [crimes involved in] the Mandela memorial investigation will be arrested and appear in court on the next court date with those already arrested," he said.
Fanoe's lawyer, Andre Schoombee, said his client had not been told to appear in court while Nkuhlu also claimed to be in the dark about the court case.
"If I was told to come to court, I would have come. I wouldn't like to be in contempt of court.
"I will wait for them to inform me," she said.
In granting bail, Kemp said the accused should not interfere with anybody on the list of witnesses provided by the state.
He also ordered that they inform the investigating officer of any intention to travel abroad.
The accused will appear in court again on September 1. - Bongani Fuzile, Ray Hartle and Mphumzi Zuzile
