Home is where the HQ is: Salamina Khoza’s house is listed as the headquarters of businesses that received R4.6 million in fraudulent contracts from the South African Police Service. (Delwyn Verasamy/M&G)
The South African Social Security Agency (Sassa) has revoked the grants of two pensioners accused of fronting for a multimillion-rand corruption scheme that was allegedly headed by the Chetty family, who are said to have looted the South African Police Service (SAPS) through fraudulent contracts.
According to a highly placed source close to the investigation, who asked to remain anonymous, a series of Mail & Guardian stories about the Chetty family’s alleged corrupt dealings within the SAPS alerted Sassa that pensioners receiving old-age grants were directors of companies that fronted for the alleged fraud.
Salamina Khoza and Sarathamoney Devi Sigamoney — aged 68 and 67, respectively — allegedly defrauded Sassa by claiming, separately, that they were poor pensioners and needed grants, while they were the sole directors of companies that received lucrative contracts on behalf of Kishene Chetty, aged 29.
Both pensioners face up to 15 years in prison should they be convicted of defrauding Sassa.
Internal National Prosecuting Authority (NPA) documents place Chetty and his 65-year-old father, Krishna Chetty, at the head of an alleged fraud syndicate that uses almost 30 front companies — allegedly fronted by pensioners and the Chetty family’s employees — to receive almost R150 million in contracts from the SAPS.
Khoza — whose modest government-issue low-cost house in Soshanguve, Tshwane, was allegedly the headquarters of businesses that received more than R4.6 million in fraudulent contracts from the SAPS — faces two other fraud and corruption cases, with the Chetty family as her co-accused.
In one of the cases, Khoza allegedly received more than R3.7 million in what the state claims were fraudulent contracts to supply the SAPS with personal protective equipment in 2020, during the height of the Covid-19 pandemic.
She was released on R5 000 bail for this matter in February after pleading poverty. The matter will sit again in March next year.
In the current case, Sigamoney and Khoza are accused of lying in their respective affidavits deposed to Sassa in applying for pension grants.
Khoza deposed her affidavit in September 2014, saying she was unemployed and relied on a R400 monthly income from selling achaar informally.
A month after deposing her affidavit, one of Khoza’s alleged front companies, Sifikile Furniture and Projects, received R966 508 to supply the police with toners, educational leaflets about firearm safekeeping and digital recording devices, according to internal NPA documents.
Khoza’s other two companies are Isasalethu Construction and Office Consumables, as well as Siyangoba Trading and Projects. A company search reveal the Soshanguve pensioner is the sole director in all three companies.
“When the three companies that were registered in her name started to earn income from contracts awarded by the SAPS, the accused [Khoza] knowingly failed to inform Sassa of a material change of information contemplated in section 14(5) of the Social Assistance Act,” reads the NPA’s charge sheet against Khoza.
The charge sheet added that, in September 2014, Khoza “did unlawfully and intentionally make a false statement in an affidavit … in support of her application for an older person’s grant”.
Sigamoney, for her part, is accused of using her company, KJP Traders, as an alleged front to rake in more than R2 million to supply furniture to police offices around the country since 2015, according to an internal NPA note M&G has seen.
Sigamoney’s company was founded in 2012, according to a company search on KJP Traders.
However, in April 2017, the state alleges, Sigamoney deposed an affidavit and claimed to be destitute when applying for a Sassa pension grant.
“In her affidavit, the accused stated that she had no source of income and that she has not worked for the ‘past 20 years’, and her children were supporting her,” reads her charge sheet.
It added that Sassa approved Sigamoney’s application by way of a letter to her on 18 April 2017 and that the accused fraudster acknowledged receipt thereof on the same day.
“The accused failed to disclose the material fact that she was listed as a sole director of KJP Traders and that KJP Traders was doing business with an organ of state,” the state alleges.
“When KJP Traders started to earn income from contracts awarded to it by the SAPS, the accused knowingly failed to inform Sassa of a material change of information contemplated in section 14(5) of the Social Assistance Act.”
Khoza and Sigamoney are each charged with the contravention of the Justice of Peace and Commissioners of Oaths Act for allegedly lying in their affidavits, as well as two fraud counts and one theft charge each.
Khoza is also charged with three counts of contravening the Social Assistance Act, while Sigamoney is charged with two counts.
The Act says grant beneficiaries should immediately inform Sassa should there be “material changes” to a person’s indigent status; such as when a beneficiary starts receiving a steady and reasonable income.
“A person is guilty of an offence if he or she hinders or obstructs the director general or an employee of the [social development] department or the agency (Sassa) in the performance of his or her functions in terms of this Act,” the Act reads.
“A person convicted of an offence in terms of this Act is liable unless a different provision is specifically made to a fine or imprisonment for a period not exceeding 15 years, or to both a fine and such imprisonment.”
In total, Khoza is accused of having defrauded Sassa of R152 000 in allegedly corrupt grants paid to her, while Sigamoney is accused of stealing R123 000 from the agency.
Sigamoney was released on R5 000 bail, and both accused will return to the Pretoria magistrate’s court, where they made their first appearances on Wednesday following their arrests in February.
A high-ranking source close to the investigations said after reading M&G’s stories on the Chetty family, Sassa investigated the two alleged fraudsters, leading to the state agency opening criminal charges against both.
“Senior members of Sassa have filed statements in this regard, which has led to Khoza and Sigamoney having their pensions grants revoked and the criminal charges against them,” the source said.
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