{"id":48352,"date":"2022-10-26T07:49:41","date_gmt":"2022-10-26T05:49:41","guid":{"rendered":"https:\/\/novanews.co.za\/mthathaexpress\/convicted-business-entity-ordered-to-pay-back-millions-to-the-state-20221026\/"},"modified":"2025-03-20T23:47:36","modified_gmt":"2025-03-20T21:47:36","slug":"convicted-business-entity-ordered-to-pay-back-millions-to-the-state-20221026","status":"publish","type":"post","link":"https:\/\/novanews.co.za\/mthathaexpress\/convicted-business-entity-ordered-to-pay-back-millions-to-the-state-20221026\/","title":{"rendered":"Convicted business entity ordered to pay back millions to the state"},"content":{"rendered":"\n<p>An auditing firm trading as Umnotho Business Consulting and registered as a Non-Profit Organisation under the directorship of Poovanderen Chetty (44) and Associates was recently convicted and sentenced by Grahamstown High Court on for charges of acquisition and possession or use of proceeds of unlawful activities.<\/p>\n\n\n\n<p>During the financial year 2014 to 2015, the then Member of Executive Council (MEC) for the Eastern Cape Department of Social Development embarked on a project to establish what was known as Women Development Resource Centres in the province.<\/p>\n\n\n\n<p>The focus of the project was on creating a platform where women would be empowered on skills and market the products produced by women in small co-operatives.<\/p>\n\n\n\n<p>The programme was rolled out and it started in 2017 at Lusikisiki where Chetty as the director of the company was irregularly awarded the tender. Chetty, being the director in the same department at the time, failed to disclose his conflict of interest which is against the law and a contravention of Public Finance Management Act 1 of 1999.<\/p>\n\n\n\n<p>\u201cThe misdemeanour was reported to East London based Serious Commercial Crime Investigation team of the Hawks for probing. Preliminary Investigation revealed that an amount of more than R31 million was paid into Umnotho Business Consulting accounts of which R19.2 million could not be accounted for. It later dawned that the company used more than R19 million for personal benefit whereas his company was declared as an NPO and was therefore not liable to accrue any benefits from the project,\u201d said Eastern Cape Hawks spokesperson, Captain Yolisa Mgolodela.<\/p>\n\n\n\n<p>As the company\u2019s representative, he was also expected to pay back all the money that was not used up during the project term, of which he only  made a partial payment of more than R750 000.  After the investigation period, Chetty\u2019s assets worth more than R19 million which include his vehicles, properties were seized by the asset forfeiture unit.<\/p>\n\n\n\n<p>After several appearances on behalf of Umnotho in Grahamstown High court on 24 October 2022, he pleaded guilty on behalf of the company.<\/p>\n\n\n\n<p>\u201cThe company was fined R 5 million of which he was expected to make a cash payment of R 2 million to the account of the treasury within seven days. He is further expected to pay R250 000 for the remaining R3 million with effect from 1st December and successive payments on the 1st of each month until the remaining balance is paid up.\u201d<\/p>\n\n\n\n<p>\u201cHe was further ordered to pay R19 million within 30 days for him to have his assets released from asset forfeiture unit and for the company to be released to continue with business-as-usual failing which the assets would be put on auction and proceeds thereof would be paid to the treasury to fund projects of this nature,\u201d Mgolodela added<\/p>\n\n\n\n<p>The provincial Hawks head, Major General Mboiki Obed Ngwenya welcomed the outcomes of this case as it serves as a deterrent for conducts of this nature that compromise the livelihood of the most vulnerable.<\/p>\n\n\n\n<h6 class=\"wp-block-heading\" id=\"h-issued-by-the-hawks-eastern-cape\"><strong>-ISSUED BY THE HAWKS:EASTERN CAPE<\/strong><\/h6>\n","protected":false},"excerpt":{"rendered":"<p>An auditing firm trading as Umnotho Business Consulting and registered as a Non-Profit Organisation under the directorship of Poovanderen Chetty (44) and Associates was convicted and sentenced by Grahamstown High Court on for charges of acquisition and possession or use of proceeds of unlawful 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