The Democratic Alliance (DA) has said it will look into allegations that up to R50 million belonging to South African soldiers may have been misappropriated through the South African Army Foundation.
Last week, Rapport and City Press reported that about R50 million in mandatory monthly contributions to the SA Army Foundation were allegedly embezzled. The contributions made by soldiers are to support funeral cover, insurance and other benefits meant to protect their families.
The alleged embezzlement came to light when the army foundation’s bank raised an alarm about the outflow of large amounts of money to personal bank accounts, City Press stated.
Much of the missing money allegedly ended up in the personal bank accounts of two of the foundation’s senior management members, a forensic investigation has revealed, according to City Press. “The investigation has been ongoing for some time and included a raid during which computers and electronic devices belonging to the foundation and its management members were confiscated.”
Gerhard van Deventer, head of enforcement at the Financial Sector Conduct Authority (FSCA), confirmed to the publication that they conducted an investigation into alleged contraventions of the law by senior personnel of the foundation after the National Prosecuting Authority referred the case.
“The investigation has now been finalised, and the authority is currently considering options to apply the provisions of the law,” van Deventer said.
Chris Hattingh, Democratic Alliance Spokesperson on Defence & Military Veterans, said his party has submitted parliamentary questions to Minister of Defence and Military Veterans Angie Motshekga to determine what she knew, when she knew it, and what action she has taken to protect soldiers from “this ongoing plunder.”
“If these allegations are confirmed, it would mean that money taken from our brave SANDF members would have been seriously misappropriated. The fact that the Foundation’s own bank raised the alarm about suspicious outflows to personal accounts should have triggered immediate intervention. Instead, soldiers have been left in the dark while investigators pieced together what appears to be a systematic plunder of their hard-earned contributions,” Hattingh said.
“The SA Army Foundation is meant to be a non-profit organisation serving those who serve our country, but instead, it appears to have become a feeding scheme for the connected and powerful.
“Our soldiers serve under difficult and often in inhumane conditions and circumstances. They face ageing equipment, inadequate housing, and the daily dangers of defending our sovereignty. The least they deserve is the assurance that the funds deducted from their pay cheques are safe from the grasping hands of the corrupt,” Hattingh concluded.
The Congress of South African Trade Unions (COSATU), meanwhile, has called for decisive action upon serious allegations of looting by senior generals and others involved with the South African Army Foundation.
“Reports by the Financial Sector Conduct Authority (FSCA) into instances of the illegal diversion of large amounts of money from the Fund into various Generals and other persons’ private bank accounts for personal self-enrichment are extremely concerning,” COSATU said in a statement.
“It is essential that the FSCA swiftly lay charges with the South Africa Police Service (SAPS). SAPS and the National Prosecuting Authority (NPA) must immediately charge, seize assets and prosecute those implicated. For far too long workers, including members of the South African National Defence Force (SANDF), have seen their hard-earned pensions treated as slush fund by their employers, fund managers and businesspersons.
“Continuous allegations of serious corruption implicating senior SANDF officers need to be dealt with if our military leadership is to enjoy the confidence of rank and file personnel and the nation at large. The Presidency and Parliament need to crack the whip upon the SANDF’s leadership under whose watch such incidents of wanton abuse of positions of authority and public finances are becoming increasingly routine,” the trade union stated.
Whilst the FSCA, SAPS and NPA must urgently act upon the reports of massive amounts of pilfering at the SA Army Foundation, the rot in the SANDF goes far deeper and must be dealt with accordingly, COSATU said.
“The Federation has received numerous complaints from SANDF personnel alleging that they are no longer receiving three meals a day, are compelled to buy their own uniforms, vehicles are no longer working, training hours requirements are no longer met, personnel on deployment are not receiving the necessary equipment, supplies or support; and suppliers are left unpaid. These are threatening the ability of the SANDF to fulfil its constitutional obligations to the nation.”
COSATU said it will formally request President Cyril Ramaphosa task the Special Investigations Unit alongside the Auditor-General to conduct a comprehensive investigation into the SANDF and related institutions, and that law enforcement ensure that any persons implicated in criminal activities be immediately dealt with. “Our military personnel dedicate their lives to serving the nation. This is the least that government can do for them,” COSATU Parliamentary Coordinator Matthew Parks said.
