The Scorpions have moved in on Walter Senoko, the businessman involved in a scandal alongside Mpumalanga public works minister Steve Mabona.
The elite investigative unit last week issued a warrant of arrest for Senoko, whose company Positing Corporate Underwriters and Insurance (PCUIC) has had contracts with Mabona’s department.
Another warrant of arrest was issued against William Mthombothi, the head of Mabona’s public works department.
Both are expected to hand themselves over to authorities next week. The warrants for the arrest of Senoko and Mthombothi relate to a transfer of R6,6-million by Mabona’s department to PCUIC. It was this transaction that was highlighted by the Mail & Guardian two weeks ago, after it was discovered that R1-million of that money had ended up with Mabona himself.
Mabona has denied that the R1-million constituted a kickback, saying it was for a car and a house that he sold to Senoko. However, neither the house nor the car has been transferred into Senoko’s name.
Contractually the R6,6-million was due to DZ Civils for road construction commissioned by the department but, by agreement, the money was released to PCUIC before it was due to DZ Civils.
PCUIC supplied guarantees to the department to enable it to release the money. Scorpions investigators believe that PCUIC does not have the standing to issue such guarantees, and that it was a fraudulent transfer.
Senoko and PCUIC have denied that the transfer was irregular, and have resisted attempts to reclaim the money by Mabona’s department, which has instituted its own probe.
Mabona told the M&G last month that a preliminary investigation showed that PCUIC’s guarantees were not genuine. He confirmed that his department had asked for the return of the R6,6-million.
Senoko’s lawyer at the time said that Senoko’s company would resist any demand to return the funds. “PCUIC is under no obligation to return any funds to the department, unless you have evidence to suggest that our client’s company owes the department any money. Any such demand for the payment of any money will be vigorously defended.”
Scorpions officials this week told the M&G that the unit has finalised charge sheets against Senoko and Mthombothi.
Mthombothi this week denied through a departmental spokesperson, that he had “received either written or telephonic notice from the Scorpions regarding any imminent warrant of arrest”. He also said he had not been asked to surrender himself to them.