A director at the Land Restitution Commission’s office in Beacon Bay, alongside her daughter, their helper, and four relatives, were arrested by the Hawks on Saturday for allegedly defrauding R9.3m meant for land claimants in the Eastern Cape.
The crime-busting unit pounced on the group after a lengthy investigation into their alleged illegal dealings.
This follows the Dispatch’s report on the investigation which was fast-tracked by rural development and land reform minister Mzwanele Nyhontso, who instructed his director-general, Mooketsa Ramasodi, to look into alleged corruption at the Beacon Bay office.
This came after complaints were lodged by land claimants.
The suspects, aged between 25 and 56, were arrested by the East London Hawks’ serious corruption investigation unit on Saturday in different parts of the country.
The director, who had also served as the land claims commission’s bid specifications committee (BSC) chair, was arrested at her Beacon Bay home with her daughter, who are both known to the Dispatch.
She has been with the commission since October 1996, when she started as a low-ranking officer and worked her way up to her current position.
The director has been on precautionary suspension since July 30.
She was suspended a day after she had reportedly handed in her resignation, which was rejected by the department. Her suspension is with full pay.
Documents seen by the Dispatch reveal that the money was meant for claimants in Mxaxo location, AbaThembu, Skobeni, Dutyini, KwaLink, Mbhems community, Ncora, Ohlsen farm, Zozo, Mdlankomo-Moyeni, Umfanta, Thornhill (Ntabethemba) and Taweni, among many others.
Account records reveal that on May 31 2022, the director and her daughter allegedly received R321,146 each into their Capitec accounts, with identity documents of people born in 1975 and 1968.
The money was part of a payout meant for 55 families in Zozo location in Kwelerha. The first phase of the claim payout in Zozo amounted to R13.7m.
Meanwhile, the identity number used in her daughter’s accounts allegedly received a R112,916 payment in March 2023 meant for a family in the R193m Ncora land claim.
The family is alleged to have further received a combined R588,123 on the same day in September 2022 from the Ohlsen farm land claim.
In 2023, in another Capitec account belonging to her daughter, payments worth R749,866 were allegedly paid between May 2023 and July from the Ncora, Mdlankomo-Moyeni and Zozo location land claims, with identity numbers from 1962,1965 and 1954.
The helper, who was arrested in her Flagstaff home on the same day, allegedly received R110,947 in her Absa account in February 2024 from the Mbhems community land claim meant to benefit 65 households.
This happened even though the Hawks had already started their investigation and allegedly briefly held the official’s laptop for investigation in December 2023.
The helper, a 48 year-old woman, also allegedly received the same R110,947 settled for the AbaThembu land claims, while five months earlier she allegedly pocketed R214,097 for the Mxaxo land claim.
Provincial Hawks spokesperson Ndiphiwe Mhlakuvana said during the period between 2017 and 2024, the director colluded with her relatives by approving self-orchestrated fraudulent claims.
All the relatives were arrested simultaneously in Gqeberha, the Northern Cape, Cape Town and Qonce.
“Moreover, it is further alleged that none of the lawful beneficiaries of land claims received payments, but her relatives unduly received payments from land claims.
“Further reports divulged that she amended the list and substituted the details of the claimants with those of her relatives, including those of her domestic worker,” Mhlakuvana said.
“Moreover, it is further alleged that none of the lawful beneficiaries of land claims received payments, but her relatives unduly received payments from land claims.
“Information about the matter was received, hence the investigation by the Hawks ensued.”
The suspects will make their first appearances in the East London magistrate’s court on Monday, facing charges of fraud.
The provincial head of the Hawks, Major-General Mboiki Obed Ngwenya, appreciated the determination shown by the investigating team for successfully apprehending the suspects.
“As the Hawks, we shall investigate and arrest all corrupt government officials without fear and favour,” he said.
He appealed to the public to continue reporting such incidents.
On the day of the official’s suspension, Nyhontso released a statement giving approval for the immediate suspension of officials implicated in alleged financial irregularities.
He said the chief land claims commissioner, Nomfundo Ntloko, had already initiated a process to address and rectify weaknesses in the standard operating procedures that were exploited in the alleged irregular activity.
The Dispatch has it on good authority that an investigation into some of the director’s colleagues is ongoing.
In the 2023/2024 financial year, the Commission on Restitution of Land Rights paid R979,237,468 for claims in the Eastern Cape.
A total of 17,638 claims were lodged with the commission before the cut-off date of December 1998, and by March 31,17,206 claims had been settled.
For the 2024/2025 financial year, the provincial commission had an annual performance plan target of 60 claims for settlement, and 45 for finalisation.
There are more than 400 claims still outstanding.
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