Uruguayan businessman Gaston Savoi, who was arrested in 2010 on charges relating to fraud and corruption with several government officials in KwaZulu-Natal and the Northern Cape, pleaded guilty to some of the charges in the Pietermaritzburg high court on Thursday.
Now 71 years old, Savoi pleaded guilty to four counts of fraud and six of corruption in terms of a written agreement with the state which came before judge president Thoba Poyo-Dlwati.
He was sentenced to a fine of R5m or 10 years' imprisonment, and a further 10 years' imprisonment suspended for five years.
Poyo-Dlwati also made a confiscation order for R60m in favour of the state and ordered Savoi pay R15m as a contribution to the costs of curatorship in asset forfeiture restraint application proceedings.
KwaZulu-Natal National Prosecuting Authority (NPA) spokesperson Natasha Ramkisson-Kara said the plea and sentence agreement was used to bring an end to the “drawn out” Amigos matter which had been delayed due to numerous interlocutory applications by the accused over the years.
“The NPA considered many factors as part of its strategic case management approach, the most important being the accused agreeing to co-operate and assist the state in its further proceedings against other government officials,” she said.
“It also took into account the time lapse in concluding this matter and that several key witnesses have since retired from their posts in the respective departments. The plea and sentence agreement was supervised by the presiding judge.”
The charges relate to the provision of water purification units (Watakas) and self-generating oxygen units (Oxyntakas) which were provided by Intaka Holdings, a company owned by Savoi, at inflated prices to the department of health in the Northern Cape and the department of local government, housing and traditional affairs in KZN. This cost the government more than R100m.
In 2022, after a separation of trials, one of Savoi’s co-accused, former head of the KZN treasury Sipho Shabalala, was convicted of corruption, fraud, money laundering and contravening the Public Finance Management Act for his part in the Amigos case, relating to the award of a R44m contract to Intaka in return for a R1m “sweetener” to the ANC. He was sentenced to 15 years.
He was initially arrested with 22 others, including ANC provincial leaders Mike Mabuyakhulu and Peggy Nkonyeni. The case became known as the “Amigos case” because that was how the accused addressed each other in correspondence. Charges were later withdrawn against Mabuyakhulu and Nkonyeni — but TimesLIVE previously reported the state capture commission recommended they be recharged.
“The NPA believes this guilty plea agreement is the most effective way of bringing this long-standing and serious matter to conclusion,” Ramkisson-Kara said.
“The sentences handed down are appropriate and the accused’s agreement to co-operate with the state will enhance further efforts to ensure accountability for related criminal acts linked to this case.”
TimesLIVE
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