Millions vanish from Gautrain books

Investigations are under way to unravel how R6,5-million of taxpayers' money vanished - under the guise of land expropriation payments for Gautrain - from the Department of Public Transport, Roads and Works.

The Star has learnt that the money may have been fraudulently channelled through a Midrand property worth only R633 000, while the signatures of more than 10 employees could have been forged.

The department has confirmed that its internal investigation is complete and that the matter has been handed over to the police.

The police, however, claim they have sent the file back to the department for further internal forensic investigation.

The man under whose watch the fraud was allegedly committed is transport head Sibusiso Buthelezi, who has been caught up in at least three major controversies worth hundreds of millions of rands since 2006.

It's understood that four payments were made by the department to the property owner's bank account between September 2007 and February this year. The payments totalled R7,1-million.

According to an affidavit - made by a senior official who investigated the fraud and whose signature appears to have been forged - the first payment of R633 000 (on September 26 2007) was legitimate and was accompanied by the correct paperwork.

But the three payments that follow, totalling R6,5-million, are ridden with irregularities.
The author of the affidavit said: "The supporting documents appear to have been fabricated... I am reflected as an official who authorised the payment advice as complete and correct.

"I can confirm that the signature and the handwriting in the form are not mine, and I do not have knowledge of this payment."

The affidavit sums it up: "R7 148 000 was actually paid to Mr H (name withheld) who was entitled to an amount of R633 000 only as a portion of the property affected by the GRRL (Gauteng Rapid Rail Link)."

The Democratic Alliance said the allegations pointed to a "high level of knowledge" of the fraud and indicated that "this is more than one isolated incident, raising suspicion that a syndicate of fraudsters is operating in the department".

The DA's James Swart questioned whether the internal probe was kept secret to "save the Gautrain project from criticism" and said the DA had long believed the R25-billion project offered large-scale opportunities for corruption, bribery and maladministration.

The Gautrain's Barbara Jensen declined to comment and said the matter fell squarely into the department's jurisdiction.

The Star sent a series of questions about the investigation to the department's head of communication, Lebelo Maloka.

The reply was brief: "Regarding the department's investigation into fraudulent land expropriation payments under the Gautrain project, the probe has since been finalised and the matter has been handed over to the police. The government will continue to act without fear or favour in dealing with corruption wherever it is found."

Police Superintendent Lungelo Dlamini on Wednesday said members of the provincial Commercial Crimes Unit had been approached. But they found that too little internal investigation had taken place and sent the complaint back without opening a docket.

"There was no proper analysis," Dlamini said.

Through deeds searches, The Star has established Mr H's identity. However, he could not be reached for comment, despite 13 separate phone numbers recorded in his profile.

At a meeting of the legislature last month, Buthelezi was questioned about Gautrain spending, and claimed every penny had been accounted for. "I actually sign off on every cent that is paid to Gautrain, so you can imagine... I almost have arthritis, I think, in my fingers at this stage," he said.