The two were arrested yesterday by the Hawks on charges of corruption, fraud and money laundering to the tune of R244 million. 

Hawks spokesperson, Katlego Mogale, confirmed the 55-year-old is the sole director of Rekgonne Community Projects - a company which entered into an agreement with the Free State Department of Agriculture and Rural Development in 2014 to implement all projects on behalf of the department for a period of two years. 

Mogale says preliminary investigation into the case indicates financial irregularities and large amounts allegedly deposited into the 49-year-old's bank account, who was also the department's Chief Financial Officer. Meanwhile, large amounts were also allegedly paid to Rekgonne Community Projects between January 2012 and December 2016.

OFM News yesterday reported that the 49-year-old is reportedly the former Chief Financial Officer who made headlines last year when the Zondo Commission heard testimonies relating to how the department made a R30 million upfront payment to Estina without any work being done or services rendered. 

The commission heard how Estina’s account only had just over R16 in its bank account on 4 July 2012, days before the provincial government deposited an amount of R30 million into its account.

Testimonies before Deputy Chief Justice Raymond Zondo further painted a bleak picture when it was revealed that the department not only paid millions into the Estina account, but did so without conducting a proper feasibility study nor drawing up a proper business plan for the project.

OFM News