The former CEO, CFO and chair of the administrative body tasked with protecting the country’s cultural heritage have appeared in court over a R53m fraud case involving the preservation of historic burial sites at home and abroad.
The department of arts and culture allocated funds to the SA Heritage Resources Agency (Sahra) for a year-long flagship project to preserve and restore the burial sites of South African heroes, in commemoration of 20 years of democracy since 1994.
Among the distinguished figures whose graves were included in the project were the Rev Zachariah Mahabane, Dr James Moroka, Steve Biko, Robert Sobukwe, Josias Madzunye, Manche Masemola, Kgosi Mampuru II and Oliver Tambo’s memorial bust.
Included in the scope of work was restoration of the Delville Wood Memorial and Museum in France as part of the centenary celebration of World War 1.
Despite the allocated budget being R29.4m, the cost of the project ballooned to R54m.
Sahra’s former CEO Veliswa Baduza, 64, former CFO Catherine Motsisi, 64, and former chairperson Fani Aaron Makhanya, 46, appeared in the Cape Town magistrate’s court on Wednesday.
The Hawks arrested the trio alongside service provider Rhiyaan Cupido, 50 — the CEO of Anix Consulting — and his wife Weedad Cupido, 46. Weedad is the financial administrator at Anix. They face an array of charges including theft, fraud and contravention of the Public Finance Management Act.
Hawks spokesperson W/O Zinzi Hani said the group allegedly duped “Sahra into paying their company over R53m for work that was not of good quality”.
The matter was reported to the Hawks in July 2017 for investigation. During the investigation, it was established that the correct procurement processes were not followed
— W/O Zinzi Hani, Hawks spokesperson
According to the 86-page charge sheet, the project, which started in early 2015, was scheduled to be complete in 12 months. It states that R20m was budgeted for the foreign graves, while R9.4m was allocated for the “domestic graves project”.
“Sahra undertook to complete the foreign graves project before the Centenary Ceremony Celebration scheduled for July 12 2016 at Delville Wood Memorial and Museum in France, in honour of the South African black people who passed on during the war,” the charge sheet reads.
Delville Wood is located 170km from Paris. The land within which the Delville Wood Memorial and Museum is situated is owned by the South African government and managed by the department of public works.
Anix Consulting won the tender to manage the project and the company was tasked with designing and implementing the graves project, including the development of a detailed project plan with clear roles and responsibilities.
Hani said between “2015 and 2017 the expenditure incurred for the upgrade of foreign and local graves ballooned to R54m. The matter was then reported to the Hawks in July 2017 for investigation. During the investigation, it was established that the correct procurement processes were not followed.”
The accused were granted R5,000 bail each and return to court on November 14.
The investigation continues.
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