PFMA

IDAC's mandate includes investigating and prosecuting serious, high-profile, or complex corruption and related commercial or financial crimes, as well as related common law offences including fraud, forgery, theft, and offences involving dishonesty.

“IDAC's mandate, as I understand it, is to investigate and where sufficient evidence of criminality is established to prosecute matters of serious, high-profile, or complex corruption and related commercial or financial crime. Asset out in section 7 of the NPA Act, the mandate extends to related common law offences, including fraud, forgery, uttering, theft, and any offence involving dishonesty and related to offences including contravention of PRECCA, POCA, PFMA, and the Local Government Municipal Financial Management Act, the Financial Intelligence Centre Act.”

Allegations include abuse of funds from Secret Service account contravening PFMA, involvement of General Lushaba as complainant, and Lieutenant General Khumalo facilitating defeating the ends of justice including nepotism by placing family in key positions.

“Alleges sensitive information relating to the abuse of funds from the Secret Service account that contravenes PFMA, General Lushaba was the complainant, Lieutenant General Khumalo facilitated the act of defeating, further allegations of nepotism placing persons and family members in strategic key positions.”

The mandate of IDAC requires a link to corruption for financial crimes investigations, restricting their powers to the provisions in the PFMA to avoid overreach.

“there has to be a link of corruption, it seems to me, because that is the very mandate of IDAC ... otherwise you are extending your powers beyond the PFMA and beyond your act”

In Count 1, an accounting officer of the South African Police Service allegedly failed to comply with PFMA regulations and prevent unauthorized, irregular, fruitless and wasteful expenditure related to a tender awarded to Medicare 24.

“Count 1 says, in your capacity as the accounting officer of the South African Police Services, you unlawfully, wilfully, and in a grossly negligent way failed to comply with the PFMA regulations ... resulting from criminal conduct regarding the tender that was awarded to Medicare 24”

No fruitless or wasteful expenditure or unauthorized expenditure is alleged against General Masemola in the charge sheet; expenditure was budgeted for and properly defined under PFMA.

“there is no fruitless and wasteful expenditure that you are alleging, at least in the charge sheet. There is no unauthorized expenditure ... It is budgeted for”

General Masemola is charged with gross negligence for failing to comply with PFMA section 8(1)(d) by failing to manage SAPS contractual liabilities and stopping acceptance of orders from Medicare 24.

“Count 2 ... General Masemola was grossly negligent in that he failed to comply with PFMA section 8(1)(d) in that he failed to manage contractual liabilities of SAPS by failing to stop the acceptance of orders from Medicare 24”

General Masemola was negligent in failing to comply with PFMA sections requiring disciplinary steps against SAPS officials involved in unlawful procurement, failing to act against them.

“Count 4 ... he was negligent in that he failed to comply with the PFMA to take effective and appropriate disciplinary steps against officials in SAPS involved in unlawful procurement”

Advocate Johnson identifies that contraventions of PFMA, fraud including siphoning of monies, theft, financial crime and money laundering relating to procurement were the specified offences falling within IDAC's mandate under section 7 of the Act.

“It was contraventions of PFMA and of fraud, where the siphoning of the monies and or the, that was the theft and the financial crime with the money laundering aspect and where the issues of the vetting and the appointments, it was in the way that it was couched, the capture of those systems and processes.”

The specified offences investigated under the office's mandate relate to procurement fraud, contraventions of PFMA, siphoning of monies, theft, financial crime including money laundering, and the vetting and appointment processes associated with capturing those systems and processes.

“It was contraventions of PFMA and of fraud, where the siphoning of the monies and or the, that was the theft and the financial crime with the money laundering aspect and where issues of the vetting and the appointments, it was in the way that it was couched, the capture of those systems and processes.”

Colonel Padayachee states the National Commissioner has been arrested for contraventions of the PFMA, which does not amount to corruption at this stage.

“The National Commissioner has been arrested for contraventions of the PMFA. That does not amount to corruption at this stage, sir.”