Secret funds buy hideaway for top cops

2012-04-16 12:09

Durban - The crime intelligence unit (CIU) has used secret state funds to buy a holiday resort on the KwaZulu-Natal North Coast for the exclusive use of the unit’s top officers.

These and other shocking facts about the misuse of CIU funds have emerged in statements to Hawks investigators and a secret report to acting police commissioner Lieutenant General Nhlanhla Mkhwanazi.

Beeld is in possession of the statements and has seen the report to Mkhwanazi.

The secret funds were also misused to rent a townhouse at Gordon’s Bay near Cape Town for CIU boss Lieutenant General Richard Mdluli.

Mdluli appointments

Sister papers City Press and Rapport reported on Sunday that seven of Mdluli's relatives had been appointed as CIU agents and were paid from the secret funds.

According to sworn statements, Mdluli had given orders that both his current wife and former wife be appointed as colonels.

The chief financial officer at the CIU, Major General Solly Lazarus also appointed a convicted drug dealer as a “contact person” at the CIU. Millionaire businessman Panganathan “Timmy” Marimuthu was sentenced to three years’ imprisonment in 1992 for dealing in 3 200 mandrax tablets.

His appeal against his sentence failed, but he never spent a day in prison.

Marimuthu was appointed as a “contact person” in the CIU and paid R50 000 a month.

Police also paid him R250 000 a month in rent for safe houses, some of which were not fit to live in.

CIU appointed five of his relatives as colonels and captains and two of his girlfriends as clerks.

The Hawks investigators said in their sworn statement that Lazarus in turn received gifts from Marimuthu, including overseas trips and jewellery.


Lieutenant Colonel Dhanajaya Naidoo of the CIU said in a sworn statement to the Hawks investigators that the KZN resort was for the exclusive use of Lazarus and other senior members of the CIU.

Naidoo said Lazarus pretended to make official visits to the resort, but friends and family accompanied him and his trips there were always over long weekends and holidays.

The statements also described how Lazarus freely made use of money in the private funds to buy air tickets for his private use.

“Lazarus used funds from the Secret Service Account [the secret funds] to pay for the flights and accommodation of pastors from the African Dream Centre, a church he belonged to,” said a Colonel Roelofse in his statement.

The information in Beeld’s possession shows that extended “security improvements” were made to some generals’ houses. The secret funds paid for a security fence and an alarm system worth R150 000 at Mdluli’s home in Dawn Park, Boksburg, on the East Rand.

A lieutenant general whose house was broken into received an alarm system worth R40 000, which was paid for with secret funds.

City Press reported last week that there were also security improvements made to the KZN home of Police Minister Nathi Mthethwa. He denied this.

Last year Mdluli was charged with murder, abduction, theft and fraud, but the charges against him were withdrawn.

He was suspended pending a disciplinary hearing, but this was also cancelled and he returned to his post recently.

Lazarus’s suspension was also cancelled.

The police, Mdluli and Lazarus did not respond to any requests for comment.

- Media24 Investigations

  • Marion - 2012-04-16 12:15

    FMG - Is there anyone in the top brass of the safety/security forces in SA who has not become entangled in this web of corruption?

      John - 2012-04-16 12:24

      no and that goes for top gov officials also

      Andrew - 2012-04-16 14:22

      The question is when (not if)are these crooks and thieves going to be brought to the courts to face corruption and theft charges. This government and top brass are rotten to the core and must be held responsible for their actions.

      CliveK - 2012-04-16 14:45

      Andrew, you can be sure that no one will be held accountable this year, as Jake and his inner circle are concerned with only one thing: retaining their positions at the ANC conference in December. In the meantime the country will be ungoverned, never mind ungovernable, and the rot will deepen.

  • Nigel - 2012-04-16 12:15

    & so the ANC rot continues, I wonder when the poor ANC voters will wake up to what is really going on in this shocking ANC rape of the nation

      JohhnyBGood - 2012-04-16 13:25

      Know what? They never will...Even if they do, they will accept it as part of being in Africa...Sad, but true

      Raymond - 2012-04-16 15:17

      It's amazing that we never see comments from the likes of Poloyatonki, Sganja and Kolobe when the evil truth is revealed.

  • kooveng - 2012-04-16 12:16

    Why is this fool not in jail?

      Bryan - 2012-04-16 12:53

      Because he probably knows way too much about certain people in power!!

      Godfrey - 2012-04-16 16:06

      @Bryan, spot on!!!

  • Assegai - 2012-04-16 12:18

    This is too shocking for words! I am speechless!

      Rofhiwa - 2012-04-16 12:30

      thats how i feel

      Sean - 2012-04-16 14:36

      This is F@CKEN PATHETIC !! Country run by a buch of imbeciles . It just amazes me , when in comes to corruption these imbeciles suddenly have a brain !!

      Vernon - 2012-04-16 14:42

      from the top now ......zuma,yengeni,shaik,selebi,winnie,cele,mduli,get the,not shocked or speechless.

  • Wimpie.Haefele - 2012-04-16 12:20

    Their own little piggy bank that can't run empty. No wonder the POSIB is so high on the agenda, so they can continue looting the fund

  • Sedick - 2012-04-16 12:20

    The ANC/government is rotten to the core, and from the top down....incidents of corruption are exposed daily, no hourly, and one can only wonder what else we do not know, and will be revealed. If the head of the house is corrupt, immoral, and without principles, what can we expect form the rest of the members of the household. And to think that we rushed by the millions to vote for these scum-buckets in 1994.....

      Michele - 2012-04-16 12:31

      Why did you rush to vote for them? Surely, looking at the rest of Africa, you had some clue as to what was going to happen?

      Sedick - 2012-04-16 12:51

      @Michelle. Being part of the previously disadvantaged, one needed to vote for change. Well we got the change that we wanted, but for the rest one had to hope that we would not follow....but, alas, history finds a way of repeating itself. As a professional, I had the opportunity to emigrate to Canada in '96 - they were giving proffs land @ $1/acre, but I chose to come back - against the advice of my European and N American friends. My comments to them were that "SA is different, we have infrastructure, mineral wealth, Mandela, the ANC (not the current scumbags!!), etc....they laughed and called me an ideologist - kind word for idiot......I have been to most countries north of us, and we are slowly, no accelerating/gravitating towards all the bad ways....

      JohhnyBGood - 2012-04-16 13:29

      @Sedick, now you know who to vote for when the next election rolls around!!! Problem is, our time to save this country is running out. Once we hit the 'point of no return', we are all doomed...

      Sedick - 2012-04-16 14:10

      @JBG....they got my vote once, and have abused it..putting it mildly....when they change, and deserve my vote, they will get it again...and with this lot, it will be a cold day in hell!!!

  • Eric - 2012-04-16 12:20

    Super cool. Chow the money comrades. I shall continue to work hard to pay 40% in taxes, tolls and whatever else you want me to pay for so you can have enough to splurge. Its not like my one vote for the opposition will make a difference...I'll work harder to make more money so you can show more of it. While your at it, let the education system crumble, the poor stay poor and crime uncontrolled. Just chow the money. After all free dom is not free

  • Johnny - 2012-04-16 12:21

    Just Shocking !!!

  • stoute.babuseng - 2012-04-16 12:24

    As soon as i make enough money i'm moving to Switzerland and yes this is coming from a black Dude

      Marion - 2012-04-16 12:30

      @stoute - apart from the snow I must agree that Switzerland sounds rather appealing as an alternate abode.

      JonoHasnosurname - 2012-04-16 12:41

      It's very saddening that there are still people living in poverty that keep supporting the current ruining party.

      Alan - 2012-04-16 14:44

      Eish man - in Austria you can still spend your E(Toll)Bucks

      amanda.victor2 - 2012-04-17 01:26

      Rather stay in South Africa so you can live with the consequences of your actions. Bet you've voted for the ANC more than once.

  • Piet - 2012-04-16 12:28

    A bunch of fraudsters ,thieves , mobsters and lying pieces of bushpig dung....And we must put our trust in them?????

  • chiepner - 2012-04-16 12:29

    Are we surprised at all!?!?!? - in the few weeks alone we learnt that billions was stolen by a) the crime intelegence unti and their spy boss and his family, b)Our police minister lied and blatantly stole funds for the upgrading of his personal security at his home, c) our dear MR Cele and his ongoing renting saga, d) and then I read this morning our Department of arts and culture are slowely being implicated in major maladministration and fraud where in one instance 800 thousand rand was paid for a banner. Now I am sorry for getting angry but this is my money. This is South African tax payers money that is funding thieves lavish lifestyles and then our government expects to force dragonian laws on to us so that they can just keep on raping the tax payer? Our food prices, petrol and now the infamous toll (wonder who gets his cut here?) is stepping in and the main cause for all this ongoing rocketing prices is corruption and maladministration. This is really getting out of hand. All this could of been used to help elliviate poverty or even pay for this toll road nonsence. Yet we as tax payers are expected to bend over, shut the hell up and keep on taking it because according to the thieves up there they think one on one economics consist out of a never ending stream of money that just magicly falls out of trees. People this is reality - if the ANC stays in power for another 15 years this country will have died because of those leaches sitting up stairs. WE NEED TRUE LEADERS!

      Michele - 2012-04-16 12:36

      And true voters.

      Gogs Lombard - 2012-04-16 13:05

      The only problem is that the next batch of leaders is currently serving in the ANCYL. Can you imagine the fiasco when they come to power. Remember the orgy they organised and flew in their comrades from Cuba etc? Unfortunately the secrecy bill will become a reality and all of this vital information will be kept in the dark. I am now beginning to understand why the NPA asked for a postponement before handing the DA the documents the SCA ordered them to.

  • Rofhiwa - 2012-04-16 12:30

    i am an angry south african,this people are wasting my money that i am working hard for.everyday we have to read about this corrupt idiots!

  • Manford - 2012-04-16 12:37

    yaaaah, what a waste , another zim, ZANU PF & ANC = ZANUANC,

  • lauren.myburg - 2012-04-16 12:39

    I need to puke again!

  • Angelo - 2012-04-16 12:39

    Gravy Bells Gravy Bells Gravy All the WAYYYY! Oh what fun, it is to ride, on the good old Gravy Train!

      Alan - 2012-04-16 14:50

      Johnnie Walker Johnnie Walker Johnnie all the way.... With an E-Toll pension And a Houghton mansion Let's give that Jacob guy a Bells.

  • Jones.Jacq - 2012-04-16 12:39

    wtf!!! it is good to know that the hard working brass is getting well deseved breaks on out tax money.

  • Michele - 2012-04-16 12:43

    this govt must go.

  • Arthur - 2012-04-16 12:44

    I'm face-palming, rolling eye, whistling and banging my head on the desk at the same time... this corruption "business" in government just get's worse and worse.

  • Gavin - 2012-04-16 12:44

    I think it's time these f holes participated in a different kind of 'time share' - one where there are bars on the windows, no time on the beach as you become the 'beach' It is so sad that after all the hard work that went into liberating SA from the evils of the past, that we will now be consumed by another evil - that of dishonest leadership and the appointment of f'ing cowards into positions of authority. Africa cries out for men of character to take the helm and steer us away from the iceberg.

  • Kaapseklonk - 2012-04-16 12:44

    Why has he not been arrested? The public should march in the streets at the e tolls and block the roads and force goverment to address the e tolls and corruption in the country .They are trying to be law abiding citerzens ,but the ANC goverment wont let them be.

      Michele - 2012-04-16 12:52

      Actually, they should change their votes from the ANC. Marching solves nothing. The government needs to be ousted while we still have some semblence of democracy left.

  • Lloyd - 2012-04-16 12:44

    why??? because they can...

  • Christopher - 2012-04-16 12:46

    Bunch of maggots

  • Bonkers - 2012-04-16 12:49

    This is out of control. Something MUST be done!

  • Dave - 2012-04-16 12:49

    Zimbabwe, here we come

  • Frans - 2012-04-16 12:50

    Really people, are there anyone brave enough to take on these people. Reading this article gives me a feeling of helplessness. My country is going down and she's going down fast.

  • Samantha - 2012-04-16 12:50

    what a sad, sad country this is becoming, - what is going to be left that is any worth to our children, the education system has become a joke, the goverment hospitals are a joke and crime ......well thats just pathetic!- yesterday i read that Zuma is getting married, again, - so the taxpayers pay the way yet again for his lust, .....and this mornings headlines were 3 classes in 1 room....... :(- - it occured to me he doesnt really give a damn about helping anyone other than himself, his only goal as president is to make sure that his extended family is taken care of by us for the rest of their lives, cos he cant f^&king afford it otherwise, clever... but when , when are people going to wake up and say enough, and stop voting for this corruption, when is it going to be time for the average south african to enjoy his day in the sun- it might be the only way is to leave :( - i want to make sure there is a future for my children-

      Michele - 2012-04-16 12:54

      You are dead right Samantha. The problem lies with those who vote this corrupt party into office. Soon there will be no democracy left and we will have no hope.

      siliziwem - 2012-04-16 13:15

      Sam, Zuma is the happiest person in SA, so that means he is not president but a happy person. just forget about him

      valcooperRSA - 2012-04-16 13:35

      @samantha....sorry we are not becoming.....we are a sad place on know the devil looks after his own

  • Bear - 2012-04-16 12:51

    One question that has been bugging me for a while, why exactly does the South African government need "secret police"? The hawks etc etc exist? I can't remember a case from memory that the secret police have solved. All the secret police seem to be is an illogical business with tons of expenses with no profit and no real use, corruption central so to say. Back in apartheid days fair enough, secret police seemed fitting but today?

  • percyferrao - 2012-04-16 12:53

    Who votes for these idiots?

      valcooperRSA - 2012-04-16 13:36

      idiots do

  • Carolyn - 2012-04-16 12:53

    Wea are all surprised WHY?? it's just more of the same, same day different department that's all these people will never be arrested or prosecuted while the ANC is running the chaos

  • Susan - 2012-04-16 12:56

    So whats new?

  • Ben - 2012-04-16 12:57

    Yip. Secret funds.... Cops and magistrates robbing.... And so it goes...

  • Dan - 2012-04-16 12:58

    It is something that we have come to expect in SA. In fact we should be concerned if nothing like this happens! What's the sad part is that the corrupt are allowed to continue as normal with all charges dropped and suspensions lifted.

  • Andre - 2012-04-16 12:59

    They are all related to Dingaan, who was a thief, murderer, fat pig,uneducated, pagan, atheist and many more!

  • Samantha - 2012-04-16 12:59

    this is the reason they are pushing the information bill, so we can just follow along like blind sheep - totally oblivious to how we are being screwed- to hide all their fraud and corruption-

  • Terence - 2012-04-16 13:08

    The chief financial officer at the CIU, Major General Solly Lazarus also appointed a convicted drug dealer as a “contact person” at the CIU. "Millionaire businessman Panganathan “Timmy” Marimuthu was sentenced to three years’ imprisonment in 1992 for dealing in 3 200 mandrax tablets. His appeal against his sentence failed, but he never spent a day in prison." ??? Am I missing something here? Why not??

      Alan - 2012-04-16 14:52

      Probably got off on a Shabir type deal

  • Berto En Petra Mostert - 2012-04-16 13:08

    For goodness sake!!! - when will it stop? We cannot allow this to carry on! I'm afraid this is the tip of the iceberg!

  • Thoka - 2012-04-16 13:19

    i would think this top brass did some sort of training smell thugs or protect themself. cowereds

  • Dennis - 2012-04-16 13:20

    Typical ANC corrupt trash all wanting to be "the man" !!! GREED IS ONE OF THE DEADLY SINS !!

  • Mazimba - 2012-04-16 13:25

    Now I'm definitely sure who NOT to vote for!

      Pappa - 2012-04-16 13:37

      was there ever a doubt???? come on, wake up, smell the coffee...

      Vernon - 2012-04-16 16:03

      @pappa....not coffee ...gravy.

  • DuToitCoetzee - 2012-04-16 13:25

    I am shouting from the top of the mountains. HELLO!!!,....hello...hello... IS THERE STILL SOMEBODY OUT THERE!!!!!....out there...out there... THAT IS NOT CORRUPT!!!!....corrupt....corrupt...corrupt....the echos died. Dead silences....only the sound of wind whispering through the bushes on the slopes, but far away, on the grasslands, hyenas that stutter in their laughs....

      Alan - 2012-04-16 15:28

      What bushes? - the land is desolate. The hyenas laugh all the way to the bank.

  • JHLR73 - 2012-04-16 13:26

    And they keep on insisting that we register for the e -toll system. Guess where all that money will go to?? Definitely not for upgrading our roads.. We are not that stupid anymore!! We can see what is happening with tax payers money. Any new incentive are just new ways to accumalate more money so it can dissapear into the corrupt system.

  • valcooperRSA - 2012-04-16 13:32

    I for one has no respect for the cANCer that is gnawing away at this country and it's citizens....As far as I am concerned this country has been high jacked by... thieves, murderer's, rapist name it that's what they hell with the lot of them may they all burn

  • swavka - 2012-04-16 13:34

    I would love someone to tally the total cost of every single corrupt tender, bonus paid, houses built and bought, cars paid for, jobs for all the family & friends- yes the bottom line figure. Please someone do a spread sheet with every single cent since 2009 that has been abused, absconded, stolen or just simply disappeared, not forgetting money given to our pals, Cuba, Swaziland, Zimbabwe to name a few. lets have the bottom line - i am sure it will be Front Page News.

      bvniekerk - 2012-04-16 13:48

      Front page too small to print that amount!

      neo.mokami - 2012-04-16 16:54

      Hope you have medical aid, incase you get a heart attack upon seeing the figures.

      Jandl Reevo Reeves - 2012-04-16 17:25

      It has been done already.30 million every year goes missing at government level through corruption and fraud.that does not take into account that senior jobs get given to family and friends with no work ethic or understanding of what they actually doing which accounts for the incompetence in our government

  • siliziwem - 2012-04-16 13:34

    read this for the second time

  • tobydt - 2012-04-16 13:48

    F***ing scumbag.

  • tobydt - 2012-04-16 13:48

    The dude is the epitome of the ANC and jacobs government.

  • William - 2012-04-16 13:58

    What a ridiculous state of affairs!!! These guys are making a complete mockery of the rule of law and common decency!!! Is anything ever going to be done about this??? Mdluli is laughing in the face of all this and living the high life on our hard earned Rands!!! From appointing unqualified family members to high profile posts to wasting money on luxury cars and houses, it reads like a soap opera!! What a laugh!!! The sad fact of the matter is they do it....because they know they can....and NOTHING will be done!!!

  • Marima Optometrists Marima - 2012-04-16 13:58

    Prior '94, would it had come public domain that a friend of a friend of a family member of a committee member responsible for authorizing payments or tender as commonly known, was actually corrupt? SA, let's smell the coffee, these corrupt activities didn't just crop up when ANC was in power. It's high time we faced facts and realized that corruption is corruption, whether you an ANC affiliate or not. Pity all monies are coming off my hard earned tax contribution. Enough is enough

  • Thando - 2012-04-16 13:59

    Cmrde Nathi Mthetwa shud account nd do th honourable thing nd resign.

  • Cpo - 2012-04-16 14:05

    This is a sic joke,again 1 in spate of events taking place in the SAPS,when will somebody act to re-shape this institution?it needs rebirth. This because of many people in leadership positions at all levels of the SAPS thinking that they are bigger then the Police force,they are regarded as the untouchables and once you have those kind of people in an organisation you bound to fail as they will do as they please knowing that none will question their authority or judgement> This is a virus in the SAPS,my opinion is that it will probaly take gov another 10yrs+ to re-shape this institution but the key is with leadership at all levels of the SAPS.