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Retired SA Army member faces R2.2m fraud charges from state, out on bail

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The SA Army is in the spotlight once again as a former military officer and a company director are accused of having colluded to defraud the state
The SA Army is in the spotlight once again as a former military officer and a company director are accused of having colluded to defraud the state
Gallo Images / Darren Stewart

NEWS


A former SA National Defence Force (SANDF) general, Mendis Eddy Modlane, and a company director, Mugisha Charles Mwali, on Thursday, appeared in the Pretoria Specialised Crimes Court, where they were facing fraud charges and released on bail.

National Prosecuting Authority regional spokesperson Lumka Mahanjana said the former military officers faced four charges of fraud, while private company Phomolo Enterprises, represented by Mwali, faced one count of fraud. Modlane has retired from the army.

According to the prosecuting authority, in 2015, Modlane was employed as brigadier general by the SANDF in the joint operation headquarters division under the directorate of joint operations support, which deals with the deployment of soldiers to other countries and in South Africa.

Mahanjana said:

On 10 November 2015, the division requested the procurement of 3000 heat-resistant buffs and 3000 military goggles to prevent sickness caused by dust for various South African bases OP Cordite in Sudan at an estimated value of R2.2 million.

Mahanjana said on 14 December 2015, Modlane allegedly defrauded SANDF by writing a request to the Central Procurement Service Centre (CPSC) to deviate from the procurement processes and requested that Phomolo Enterprises be appointed to supply and deliver the said items for three rotations starting on 16 January 2016.

She added: 

After the submission was approved by CPSC, Phomolo Enterprises was invited to bid. It then submitted bid documents with a total price of more than R2.1 million, R940 less than the estimated value of R2.2 million and was later appointed for the services on 15 February 2016.

Mahanjana said the two were arrested on 17 April 2024, after they handed themselves over to the police. She said in court, using an affidavit, the two denied committing the offences and asked to be released on bail.

She added: “The state did not oppose their release on bail because they were not a flight risk and had no previous convictions nor pending cases. After bail was granted, the matter was postponed to 17 July 2024 for further investigations. More accused persons are expected to be added to the matter.”   

It is not the first time that a senior defence force member has been implicated in corrupt procurement dealings involving the department.

In a recent case, Major General Noel Ndhlovu, a top general in the military found himself under investigation after companies owned by his wife, Nombasa Ndhlovu, scored nearly R200 million worth of contracts in the army.

The first contract was for R79 million and was awarded without a competitive tendering system.  The second contract was awarded in 2018 with the military a whopping R105 million.

Ndhlovu was criminally charged with fraud and corruption but has been granted immunity and turned as a state witness in the case against former National Assembly Speaker Nosiviwe Mapisa-Nqakula, who is charged with corruption and money laundering.

Earlier this month, Nqakula appeared in the Pretoria Magistrates' Court, where she was officially charged with 12 counts of corruption and money laundering based on allegations that she solicited bribes from a service provider while she was the defence minister.

The top politician is accused of having solicited bribes from Ndhlovu while she was the department's political head.  


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