Housing ‘scam’ official has a ‘tendency for fraud’

This was the evidence given by the investigator in the bail hearing for IFP MPL Hasan Motala, who is accused of being involved in a multi-million rand housing tender fraud scam.

Durban - The KwaZulu-Natal government has expressed grave concern at fraud charges levelled against beleaguered IFP MPL, Hassan Motala, going so far as to contact the investigating officer directly.

This emerged in the Durban Specialised Commercial Crime Court on Monday, during Motala’s bail application.

Warrant Officer Yoganathan Govender testified that the provincial government was worried its name was being tarnished.

Motala, along with three others, stands accused of being involved in a multimillion-rand housing tender scam in which fake contracts to build low-cost housing for the Department of Human Settlements were “sold” to victims.

The State opposed bail and Motala was treated as a schedule six offender, which meant the onus was on him to prove there were exceptional circumstances warranting his release on bail.

Govender said on Monday that his investigation was at a sensitive stage, with more arrests expected and he was concerned Motala would interfere with witnesses, should he be released.

It emerged that Motala had four previous convictions and two pending cases against him.

He had a “tendency” to commit this type of crime, Govender said. “Even while on bail,” he said.

Govender also said that while initial investigations suggested Motala was being charged with fraud totalling about R10 million, this amount was actually closer to R19m.

Acting for the defence, advocate Gator Reddy, instructed by attorney Raneshan Naidoo, read into record Motala’s affidavit in support of his application.

Motala argued that barely a day went by without a politician or public official being accused of some wrongdoing and that many were, indeed, corrupt. But, he added, it was not uncommon for some to be “scapegoats”.

He gave his version of events as follows:

According to Motala, he became aware last year that “certain persons representing third parties” were requesting bribes in return for securing contracts and, he said, the complainants in this matter appeared to have fallen for this scam.

He pointed out that, in his view at least, these “complainants” were guilty of corruption and/or other charges.

Motala said meetings with him had been “simulated” but, in truth, never took place and that he, himself, was actually responsible for reporting the scam to the president’s office and to the police.

He explained that deposits made into his account - totalling about R8m - were in fact payments for building supplies his company had provided for a low-cost housing project.

Reddy told the court Motala did not know the complainants and could not contact them.

He also said Motala had handed over one of his passports and could not locate his diplomatic passport at this stage, but was not a flight risk.

He required hospitalisation for chest pains and sleep apnoea, Reddy said.

Reddy also pointed out that his client had, in his other cases and in this matter, co-operated with police.

The application continues.

Daily News