The multimillion-rand fraud trial involving former EP Rugby boss Cheeky Watson and five others hit a snag on Monday when his defence counsel objected to the state including a charge of failure to report suspected theft or fraud on his charge sheet.
Advocate Francois van Zyl SC, on behalf of Watson, told the Port Elizabeth Commercial Crimes Court that the charge was initially withdrawn by the state but then reinstated in August after Watson unsuccessfully applied to have his case separated from his co-accused.
“The state failed to produce a signed authorisation [to charge Watson],” Van Zyl said.
He said a letter was received by Watson’s instructing attorney, Danie Gouws, on August 24 indicating that the state intended to charge him with failing to report suspected fraud or theft again but that the prosecution did not follow due processes.
State prosecutor advocate Tjaart van Zyl submitted to the court that the signed authorisation by the deputy director of public prosecutions had been communicated to Watson and Gouws and that Watson had more than enough time to respond to the notice of intent to charge him.
“It is common cause that the state did not have authorisation previously,” he said.
“The state did subsequently obtain authorisation from the [deputy director of public prosecutions. Watson] had more than enough time to respond to the notice. Not only did [Watson] not respond to the notice [but] he also waived his right to respond, possibly after consultation with his attorney.”
A letter of objection highlighting the reasons why Watson did not respond was submitted to magistrate Lionel Lindoor.
In the letter, Watson claimed he did not see fit to respond to the notice from the state as the charge had initially been withdrawn.
His defence counsel asked Lindoor to rule that the charge be withdrawn.
After hearing submissions from both sides Lindoor postponed the matter to Tuesday for him to consider the submissions of both parties. Watson, along with former assistant director in the metro’s finance department Nadia Gerwel, businesswoman Andrea Wessels, former CEO of Access Facilities and Leisure Management Stephan Pretorius, ex-director of Laphum’ilanga Mandisa Mkasa and Wessels’s company, Zeranza, are facing 44 charges among them.
The charges range from fraud to money-laundering and contravening sections of the Prevention of Organised Crime act.
None of the accused have pleaded.
The trial can only start after Lindoor makes a ruling on whether or not Watson will face the additional charge.
It is alleged that between March 2011 and August 2015, through various fraudulent activities, the accused siphoned off nearly R300m meant for the city’s beleaguered Integrated Public Transport System.
The trial is expected to start on Tuesday.