DoD investigating hundreds of millions of rands’ worth of corruption and fraud cases

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The Department of Defence is investigating more than half a billion rands’ worth of corruption and fraud cases, the Portfolio Committee on Defence and Military Veterans (PCDMV) has heard.

In a briefing today, the Department of Defence (DoD) gave an update on measures to combat corruption and fraud and provided an overview of the status of corruption and fraud in the Department of Defence.

The DoD said that through the Inspector General it carries out detection investigations on reported incidents of corruption and fraud (C&F) with the provision that positively identified cases are handed over to the Military Police Division (MPD) for further investigation and prosecution.

A DoD Multi-Disciplinary Team focussed on identifying corruption and fraud within the procurement environment conducted its first investigation in March 2020, which led to the opening of 22 criminal cases with the Military Police Division and the Commercial Crimes Court covering R87 million, the DoD said.

“This approach is ongoing with a team consisting of members from the Defence Inspectorate Division, Defence Intelligence Division, Finance Division and the Military Police Division,” the DoD told the PCDMV.

The team is currently following up on possible corruption and fraud regarding the following companies or entities:
Services rendered by consulting company to the value of the value of R239 million for a through life capability project;
A contract awarded to a company for the provision of COVID-19 related equipment to the value of R400 million;
Six hundred and fifty-eight computers procured by the South African Military Health Service (SAMHS) HQ to the value of R11 million; and
Server racks procured by CMIS (IT Division of the DOD) to the value of R17.9 million.

The DoD reported on the number of fraud and corruption cases from 2016 that have been finalised in military courts. For the 2020/21 financial year, 38 cases were received and 28 finalised with 18 convictions and ten acquittals.



Between the 2016/17 financial year and 2020/21 financial year, military courts sentenced three people to imprisonment for fraud and corruption; three were given suspended sentences; eight cases were dismissed; 14 were discharged; and 96 were given fines between R1 000 and R6 000.