The Priority Crime Specialised Investigation of the Hawks was successfully granted assert forfeiture order for assets to the value of more than R19 million on 25 October 2022.
During 2015 to 2016, a total amount of more than R29 million was paid in four tranches from the Department of Social Development in King Williams Town into two business accounts controlled by Mr Chetty located in Durban.
The purpose of these payments was due to two service level agreements entered into between the Department of Social Development and the Umnotho Business consulting also known as Umnotho Training and Development of which Mr Chetty is the sole director.
This entity had to deliver on various matters including the training of cooperatives towards poultry, piggery and the upliftment of the communities through training at the Palmerton facility in Lusikisiki amongst others.
During the financial and asset forfeiture investigation it was however established that the bulk of the received funds were not utilised towards the deliverables, but rather to the personal benefit of Mr Chetty.
The total amount of the undue benefit was calculated to be more than R19 million. Only R10 million was legally and appropriately utilised.
Mr Chetty and other two individuals were arrested during 2018 on various charges of fraud, theft, money laundering and contravention of the Non-profit Organisation Act 71 of 1997.
During the same investigations various preservation orders, a forfeiture order and a provisional restraint order were granted by the Grahamstown High court. Post arrest, but prior to the commencement of the trial accused number 1 being a senior official of the Department of Social Department passed away.
On 25 October 2022 in Grahamstown High Court, the company represented by Mr Chetty pleaded guilty to the contravention of section 6 of Prevention Of Organised Crime Act (POCA), possession of, acquiring of and usage of proceeds of crime.
The company was convicted and sentenced to a R5 million fine, of which R2 million was to be paid within 7 days.
The remaining R3 million balance is to be in R250 000-00 tranches with effect from 1 December 2022 and the 1st of each successive month thereafter until the amount is paid up.
The same court granted a confiscation order for the amount of more than R19 million which is to be paid into the account of National Treasury within 30 days. The assets of Mr Chetty remain restrained until the amount is fully paid and such proof is provided.
The Provincial Head Major General Mboiki Obed Ngwenya welcomed the outcomes of this case as it serves as a lesson to other white-collar criminals out there, sending a strong message that the arm of the law is long and some consequences of ones actions are not always pleasant.
