Court hears details of Block's alleged fraud

2014-02-05 21:57
John Block, LUR vir finansies, ekonomiese sake en toerisme.

John Block, LUR vir finansies, ekonomiese sake en toerisme.

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

kalahari.com

Kimberley - Details of the alleged multi-million rand Trifecta rental fraud emerged in the Northern Cape High Court on Wednesday.

Judge Mathebe Phatshoane is hearing evidence in the case against Northern Cape ANC heavyweights John Block, Alvin Botes, Yolanda Botha and Trifecta director Christo Scholtz.

They face charges of fraud, corruption and money laundering.

The National Prosecuting Authority alleges the Trifecta Group entered into a number of lease agreements with the Northern Cape social development department in which rentals, or rental space, were grossly inflated.

All the accused pleaded not guilty on all the counts.

The State's first witness, Trevor White, a PWC forensic auditor, told the court the State faced a potential loss of R24m over ten years in only one lease agreement in Upington.

This included more than R4.6m the State lost due to office space "that did not exist".

The court heard the taxpayer also coughed up more than R1.3m to Trifecta, which owned the Oranje Hotel building, before officials could occupy the office space.

White testified that before the Trifecta lease on the Oranje Hotel building was signed, officials had already identified another building, the Bosch Diesel Electric building, which was deemed suitable for office space.

The provincial social development department at the time in 2005 was looking for office space in Upington for the newly established SA Social Security Agency (Sassa).

The lease would be signed by the department and then be ceded to Sassa.

White testified that rental for the Bosch building would be around R70 000 a month for a five year contract.

Renovations to the Bosch building, to accommodate Sassa, would have cost about R450 000 and were for the expense of the landlord (Bosch).

Although a final agreement was drawn up by officials for the Bosch building, it never became official or signed by December 2005.

However, in February 2006 the then provincial head of social development Yolanda Botha allegedly informed officials about an offer by a Northern Cape businessman Sarel Breda, the owner of the Oranje Hotel building.

"Suddenly a new player appears on the scene... no tender process," submitted White.

The court heard Breda's Oranje Hotel was about twice the size of the Bosch building and would cost an estimated R145 000 a month.

White testified Botha signed the lease for the Oranje Hotel even before the agreement was approved by the provincial tender board.

Further negotiations apparently followed on the Oranje Hotel lease in regard to renovations to accommodate Sassa.

Trifecta told the department the renovations would cost R3.8m.

White testified the landlord wanted the State to pay for these renovations.

The case continues.

- SAPA

Read more on:    trifecta group  |  alvin botes  |  john block  |  yolanda botha  |  kimberley  |  corruption
NEXT ON NEWS24X

SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
23 comments
Add your comment
Comment 0 characters remaining
 

Inside News24

 
/News
 
Traffic
Lottery
 
  • Monday Kuils River - 17:34 PM
    Road name: Polkadraai Road Eastbound
    ROADWORKS between the R102 Van Riebeeck Road and the R310 Baden Powell Drive exit
  • Sunday Parow - 08:10 AM
    Road name: Mike Pienaar Boulevard
    WEEKENDS - ROAD CLOSED between Voortrekker Road and Tienie Meyer Drive due to roadworks (until end July)
 
More traffic reports...
 

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now!

Kalahari.com - shop online today

2 TV Series for R250

Get 2 TV Series box sets for R250 and save up to R148! Offer valid while stocks last. Shop now!

Mind blowing deals on beauty & fragrances

Save up to 30% off beauty and fragrances. Offer valid while stocks last. Shop now!

Up to 50% off hair care products!

Save up to 50% on professional hair care products at kalahari.com. Offer valid while stocks last. Shop now!

30% off academic books

Score a mind blowing 30% off academic books! Offer valid while stocks last. Shop now!

Mind blowing deals on electronics!

Save up to 35% on electronics. Offer valid while stocks last. Shop now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Apple iPad 3 Black 64GB 9.7" Tablet With WiFi & 4G

Retina Display Finally the incredible Retina display technology from the iPhone...

From R7999.00

I'm shopping for:

Horoscopes
Aquarius
Aquarius

Something may come up to alert you of your security needs. It may be that you need to create a better structure for your finances...read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.