The Hawks are investigating five cases of fraud, theft, and corruption within the South African Navy (SAN) worth nearly half a billion rand.
This was revealed by the Hawks, officially the Directorate for Priority Crime Investigation (DPCI), on 12 November during a presentation to the Portfolio Committee on Defence and Military Veterans (PCDMV). Updating the committee on its cases pertaining to the defence portfolio, the Hawks stated that nine cases involve the Department of Defence, four involve the Department of Military Veterans, and one relates to material irregularities.
The cases go back as far as 2009 and were passed to the Hawks in the wake of seemingly stonewalled investigations by Military Police (MP) – Deputy Minister of Police, Dr Polly Boshielo, told the PCDMV that the Military Police took a long time to refer to cases and then military officers refused to cooperate with them.
One SAN case being investigated by the Hawks deals with fraud and corruption in a contract for maintenance and repairs to SA Navy surface and sub surface vessels for a period of three years. It is alleged that the service provider tampered with bid documents using tippex, and that amounts were altered and signatures forged on the bidding documents.
“It is alleged that the appointment of the service provider whose documents were tampered with was irregular. Total amount of the tender was R52 000 000”. The case was reported by the Military Police in 2018 and referred to the Hawks in July 2024. To date 42 statements have been taken to support corruption and fraud charges in this specific investigation.
While not stated in the Hawks presentation, it is understood this contract was awarded to Marine and General Engineering (RA Govender CC) in 2016.
Fraud and theft are suspected in another SAN contract to supply the Navy with spares for surface and submarine vessels for a period of three years. The contract, awarded in 2017/18, is valued at R395 million. “Internal investigations reveal that the service provider supplied the SA Navy with a sub-standard spares, claiming that the spares were procured in Germany whilst they were procured locally,” the Hawks stated. The case was reported by the Military Police in 2018 and referred to the Hawks in mid-2024. Witness statements are being obtained.
A third case involves fraud and theft in the awarding of a tender for service and repairs of the minesweeper SAS Umzimkhulu’s engine at Simon’s Town between 2016 and 2018. Internal investigation revealed that the service provider submitted a false Dyno Testing Certificate belonging to the SAS Umhloti. It is further evident that the services were never rendered at all by the service provider, the Hawks stated. The case was reported by the Military Police in 2020 and referred to the Hawks in July last year – it remains under investigation, with 25 statements obtained so far. Cape Town-based GRIMMS was paid R30 million between 2016 and 2018, the Sunday Times reported in 2023, stating the allegedly false testing certificate led to the SAS Umzimkhulu being unserviceable.
Another case involves the SAS Umzimkhulu, covering invoices submitted for work done between November 2015 and February 2021. The service provider was paid R16 million without the Navy knowing that services were never rendered – something confirmed by an internal investigation. This case was reported by the Military Police in 2021 and referred to the Hawks in July last year. Seven statements have been obtained in the ongoing investigation. According to the Sunday Times, the R16 million contract was awarded to GRIMMS. GRIMMS founder Shafiek Hendricks has dismissed the allegations.
GRIMMS has also been fingered for fraud and theft involving engine repairs on the SAS Drakensberg in 2021 amounting to R3.8 million. “After receiving an invoice from the service provider, the officials processed the invoices while no work was done by the service provider. It was later discovered that there was no completion certificate,” the Hawks stated. The cases, referred to the Hawks in July 2024, is still ongoing.
