Phahlane investigation: DA submits CPN Forensic Report to IPID

26 January 2017

The DA is in possession of the full forensic report, conducted by CPN forensic and accounting services, into allegations by the Police and Civil Rights Union (POPCRU) of corruption in the forensic services, which at that time was headed up by the now Acting National Police Commissioner, General Phahlane.

These allegations include:

Procurement irregularities:

- The report identifies an over-payment of almost R 500 000 to Crimetech, which is the same company who installed Phahlane’s sound system in his lavish house in Pretoria;

- The report also details how Phahlane changed the procurement system for delivery of supplies to Local Criminal Record Centres, which possibly created an opportunity for the supplier, CrimeTech, to get away with not delivering goods already paid for. Specifically, the report identifies that deliveries related to seven orders, cannot be confirmed, meaning that in all likelihood, the supplies were never in fact delivered, although they were paid; and

- In a matter of three financial years, payments to CrimeTech increased by an alarming 134% percent.

Irregular appointments:

- Promotions of two brigadiers may have been irregular as they skipped ranks and do not seem to have had the required experience to qualify for their promotions.

Phahlane’s 2009 birthday party:

- In 2009, senior SAPS members allegedly organised a birthday party for Phahlane, disguising it as a police workshop, using SAPS funds to pay for it. These senior members were charged with fraud and Phahlane failed to institute disciplinary proceedings against these members.

The report accordingly found that:

- Record keeping of financial documents incomplete and not conducive of proper control;

- The number of outstanding delivery notes concerning, where SAPS registers can’t prove that delivery took place the payments should be regarded as losses and requires investigation in terms of PFMA and Treasury Regulations;

- Drastic escalation of expenditure on chemicals from supplier is a concern – marked increase before expiry of contract RT 152-2009;

- Quality of chemicals and canisters by supplier is questionable;

- Needs assessment done by Brigadier Diko did not comply with prescripts of “Standing Order (Stores) 2, Demand Management”;

- Procedure whereby supplier, after delivery to the CRC, retrieves items from the CRC to distribute creates serious risks;

- Supplier benefited from VAT incl. prices but wasn’t registered for VAT and never paid VAT over to SARS; and

- May possibly have been collusion between Crimetech and Kriminalistik with respect to a certain contract.

The report further recommended, amongst other things:

- A detailed audit with respect to outstanding delivery notes, followed by referral (where applicable) for investigation in terms of PFMA and Treasury Regulations;

- Losses as a result of chemicals expiring because they were overstocked to be investigated in terms of the PFMA and Treasury Regulations;

- Reporting VAT irregularities to SARS for investigation; and

- Reporting possible Kriminalistik/Crimetech Labs collusion to National Treasury for investigation.

The DA will be submitting this full report to the Independent Police Investigative Directorate (IPID), and will request that they extend their current investigation to the entirety of Phahlane career in the SAPS.

We will also demand that when this report is discussed in the Portfolio Committee of Police and that Phahlane be summoned to account for himself and these disturbing allegations that have surfaced during his tenure.

In particular, the committee must ascertain whether the recommendations of the report have been fully adhered to.

This regrettably places another cloud of suspicion over the office of the National Police Commissioner. Instead of focussing on fighting crime, and keeping our communities safe, SAPS leadership are embroiled in allegations and investigations.

It is damning indictment on the President of the Republic, Jacob Zuma, and the Minister of Police, Nathi Nhleko, that they are incapable of making sound appointments in the senior leadership of SAPS.

They are letting down the thousands of South Africans who are victims of crime each year.

That is why the DA is more determined than ever to end the rot in the SAPS and to ensure that we have the best possible team to lead the fight against crime. Dealing with this report is a first step towards achieving this.

Issued by Zakhele Mbhele, DA Shadow Minister of Police, 26 January 2017