Phahlane investigation: DA submits

CPN Forensic Report to IPID

The DA is in possession of the full forensic report, conducted by CPN forensic and
accounting services, into allegations by the Police and Civil Rights Union (POPCRU)
of corruption in the forensic services, which at that time was headed up by the now
Acting National Police Commissioner, General Phahlane.
These allegations include:
Procurement irregularities:
The report identifies an over-payment of almost R 500 000 to Crimetech, which is the
same company who installed Phahlanes sound system in his lavish house in Pretoria;
The report also details how Phahlane changed the procurement system for delivery of
supplies to Local Criminal Record Centres, which possibly created an opportunity for the
supplier, CrimeTech, to get away with not delivering goods already paid for. Specifically,
the report identifies that deliveries related to seven orders, cannot be confirmed,
meaning that in all likelihood, the supplies were never in fact delivered, although they
were paid; and
In a matter of three financial years, payments to CrimeTech increased by an alarming
134% percent.
Irregular appointments:
Promotions of two brigadiers may have been irregular as they skipped ranks and do
not seem to have had the required experience to qualify for their promotions.
Phahlanes 2009 birthday party:
In 2009, senior SAPS members allegedly organised a birthday party for Phahlane,
disguising it as a police workshop, using SAPS funds to pay for it. These senior
members were charged with fraud and Phahlane failed to institute disciplinary
proceedings against these members.

The report accordingly found that:

Record keeping of financial documents incomplete and not conducive of proper
control;
The number of outstanding delivery notes concerning, where SAPS registers cant
prove that delivery took place the payments should be regarded as losses and requires
investigation in terms of PFMA and Treasury Regulations;
Drastic escalation of expenditure on chemicals from supplier is a concern marked
increase before expiry of contract RT 152-2009;
Quality of chemicals and canisters by supplier is questionable;
Needs assessment done by Brigadier Diko did not comply with prescripts of Standing
Order (Stores) 2, Demand Management;
Procedure whereby supplier, after delivery to the CRC, retrieves items from the CRC to
distribute creates serious risks;
Supplier benefited from VAT incl. prices but wasnt registered for VAT and never paid
VAT over to SARS; and
May possibly have been collusion between Crimetech and Kriminalistik with respect to
a certain contract.
The report further recommended, amongst other things:
A detailed audit with respect to outstanding delivery notes, followed by referral (where
applicable) for investigation in terms of PFMA and Treasury Regulations;
Losses as a result of chemicals expiring because they were overstocked to be
investigated in terms of the PFMA and Treasury Regulations;
Reporting VAT irregularities to SARS for investigation; and
Reporting possible Kriminalistik/Crimetech Labs collusion to National Treasury for
investigation.
The DA will be submitting this full report to the Independent Police Investigative
Directorate (IPID), and will request that they extend their current investigation to the
entirety of Phahlane career in the SAPS.
We will also demand that when this report is discussed in the Portfolio Committee of
Police and that Phahlane be summoned to account for himself and these disturbing
allegations that have surfaced during his tenure.

In particular, the committee must ascertain whether the recommendations of the report
have been fully adhered to.
This regrettably places another cloud of suspicion over the office of the National Police
Commissioner. Instead of focussing on fighting crime, and keeping our communities
safe, SAPS leadership are embroiled in allegations and investigations.
It is damning indictment on the President of the Republic, Jacob Zuma, and the Minister
of Police, Nathi Nhleko, that they are incapable of making sound appointments in the
senior leadership of SAPS.
They are letting down the thousands of South Africans who are victims of crime each
year.
That is why the DA is more determined than ever to end the rot in the SAPS and to
ensure that we have the best possible team to lead the fight against crime. Dealing with
this report is a first step towards achieving this.