Former fisheries boss arrested for ‘failure to report fraud’

A former deputy director-general in the department of agriculture, forestry and fisheries has appeared in court for allegedly failing to report fraud.

Siphokazi Ndudane appeared in the Bellville specialised commercial crimes court in Cape Town on Monday. She faces two counts of contravening the Prevention and Combating of Corrupt Activities Act (Precca).

Ndudane was released on R100,000 bail on condition she surrender her passport.

Regional National Prosecuting Authority (NPA) spokesperson Eric Ntabazalila said Ndudane was appointed to the deputy director-general position on February 1 2016 and was a “person of authority in terms of Precca”.

“One of her responsibilities involved ensuring she acted in the best interests of the department, which included not doing anything that might prejudice the department,” said Ntabazalila.

“Precca states any person in her position, who ought to have known or suspected any other person has committed an offence of theft, fraud, extortion, uttering or forgery of a document involving an amount of R100,000 or more, must report such knowledge or suspicion to any police official.

“The state alleges Wiljarro (Pty) Ltd entered into a contract with the department for the processing and marketing of confiscated wild abalone. The company made a misrepresentation to the department, claiming it had a valid fish processing and establishment permit to carry out its obligation as per the term of its contract with the department.”

Ntabazalila said Ndudane deposed an affidavit on January 30 2017 to the high court in Cape Town in a bid to set aside an order it previously granted in favour of the company in connection with the contract.

“The contract was valued at R2.2m,” said Ntabazalila.  

“In the affidavit, she informs the court of the material misrepresentations the company made, which were committed with the sole intention of gaining an undue advantage over other bidders. She failed to report to the police the offence of fraud which was committed by Wiljarro against the department.”

Ntabazalila said in the second charge, the state alleges Hentiq 234 (Pty) Ltd successfully applied for 2005/2006 long-term fishing rights to commercially harvest the Hake Longline, Westcoast Rock Lobster and Small Palegic sectors of the industry and for a transport permit.

“Between September 2014 and April 2015, the company was informed its rights were revoked,” said Ntabazalila.

Then minister Senzeni Zokwana upheld the decision around July 2015 after the company lodged an appeal against Ndudane’s decision, he said.

“The fishing rights were revoked because the company submitted a fraudulent tax certificate when it applied for the fishing rights. On July 1 2016, the company sent an offer of settlement to the department following its application to the court.

“Despite advice from her colleagues, Ndudane instructed the chief director: legal services to settle the matter. She also did not report this offence of fraud committed by the company to the police. The misrepresentation involved an amount of more than R30.6m.”

Ndudane’s case was postponed to September 19 for docket disclosure and defence consultation.

As part of her bail conditions, Ndudane was “ordered to surrender all her passports to the investigating officer, on or before August 16 2023, and to provide the investigating officer with documentary proof of her residential address”.

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