NPA probes Willie Hofmeyr

24 July 2016 - 02:02 By THANDUXOLO JIKA
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Corruption buster and public protector hopeful Willie Hofmeyr is under investigation by the National Prosecuting Authority (NPA) for allegedly authorising the payment of almost R80-million to maintain strip clubs.

The Sunday Times can reveal that national director of public prosecutions Shaun Abrahams has instituted an internal investigation into allegations that Hofmeyr made payment arrangements with a curator tasked with maintaining about 15 attached assets of strip-club boss Andrew Phillips.

Hofmeyr, who was the head of the NPA's Asset Forfeiture Unit (ASU) in 2000 when Phillips was arrested, authorised the attachment of The Ranch and Titty Twister strip clubs and other properties after allegations that Phillips ran them as brothels and profited from prostitution.

Hofmeyr was moved from the AFU to head the NPA's legal affairs department in August last year following a fallout with Abrahams.

NPA spokeswoman Bulelwa Makeke confirmed the investigation was instituted in November last year. "In terms of the agreement between the financial institution concerned and the curator, Mr Hofmeyr entered into arrangements whereby a condition of the overdraft facility was that any payments due to the curator were ceded by the curator in favour of FNB and paid directly into the FNB account of the curator," she said.

"In the event that any irregularities were conducted, such person(s) must be held accountable departmentally and criminally."

The NPA claims Hofmeyr entered into the agreement without getting authorisation from either the national director of public prosecutions or National Treasury.

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Hofmeyr's supporters believe the probe is part of a concerted smear campaign to block any possibility of him becoming Thuli Madonsela's successor. Hilton van Niekerk, who nominated Hofmeyr, said there was no case to answer and Phillips's allegations were not new.

Hofmeyr said yesterday: "I will take some legal advice on this. It is not something I am worried about. If you are a candidate not attacked, you might not be worthy. I am willing to give answers to parliament. Whoever is a serious candidate would be subjected to such - look at the attacks against Madonsela."

The case against Phillips had been conducted with the full support of previous NPA bosses Bulelani Ngcuka, Vusi Pikoli and Mokotedi Mpshe, he said.

The NPA claims the payments, which were made after September 2012 following the permanent stay of prosecution in Phillips's case after endless delays by the state, were deemed fruitless expenditure.

"The curator has been reimbursed R77,903,617, for expenses related to his duties for the upkeep of Mr Phillips's assets," said Makeke. "The previous chief executive officer [Karen van Rensburg] of the NPA recommended to the NDPP that payments made to the curator from the end of September 2012 be viewed as fruitless and wasteful expenditure."

According to insiders in the NPA claims are that Hofmeyr entered into the agreement without authorisation from either NDPP or National Treasury. However, this was allegedly done only in 2014, resulting in the NPA continuing payments to the curator for the upkeep of the properties.

The assets - worth more than R20-million - included the two strips clubs, which Phillips said this week were now dilapidated. He has refused to take them back.

"We itemised the damages and just to fix it is about R300-million," said Phillips.

"Many assets have been destroyed, not just the old Ranch. There are probably about 15 properties in different places. Some of them have squatters, some have become dumping grounds and homes."

Phillips's objection would not lead to Hofmeyr's "automatic disqualification", said Makhosi Khoza, chairwoman of the parliamentary committee tasked with choosing the next public protector.

"A candidate will be asked to confirm the allegations or deny. Such response, if found to be untrue, will lead to that candidate's disqualification or removal from office if already appointed," said Khoza. "If such information is not disclosed voluntarily, his fit and proper [status] may be questionable."

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