COFIMVABA, Eastern Cape – Two community members, Noncedile Qhina (65) and Thembile Sikrweqe (64) appeared before the Cofimvaba District Court in connection with allegations of theft involving funds totaling R1.4 million belonging to the Khulani Project.
The matter was postponed to 29 October when it is expected to be transferred to the Mthatha Specialised Commercial Crime Court for further proceedings.
A spokesperson for the Hawks, Warrant Officer Ndiphiwe Mhlakuvana, said they were arrested by the Mthatha Hawks Serious Commercial Crime Investigation team.
He said the Khulani Project is a community-based agricultural initiative established by residents of Ntshingeni location, St Marks in the Cofimvaba area.
“The matter dated back to 2012, when members of the Ntshingeni community allegedly established the project with the aim of advancing agricultural activities and improving the socio-economic circumstances of participating community members. The project reportedly maintained a bank account with ABSA, with three individuals appointed as signatories and entrusted with administering its finances,” said Mhlakuvana.
Investigation uncovers alleged discrepancies
He added that their responsibilities included managing the project’s financial affairs and ensuring that expenditure was undertaken in accordance with decisions made in the interests of the community beneficiaries.
“The project reportedly received grant funding of approximately R3.85 million from the Chris Hani District Municipality, intended to support and advance the community’s agricultural initiative. Serious discrepancies allegedly emerged during the financial expenditure reporting process in December 2015, when the project was unable to account for a substantial portion of the funds entrusted to its administration.”
He added that more than R1.4 million was allegedly left unaccounted for. According to Mhlakuvana, the depletion of the project’s financial resources subsequently contributed to the collapse of the initiative and undermined the developmental objectives for which the funding had been provided.
He said a complaint was lodged by members of the community, prompting an investigation by the Hawks. During the investigation, evidence relating to 19 cash withdrawals allegedly made from the project’s bank account was uncovered.
“According to the investigation, the withdrawals were allegedly made for the personal benefit of the accused, without the knowledge, participation or authorisation of the community members who were the intended beneficiaries of the project.
ALSO READ: Former Butterworth Post Office employees arrested for fraud
