Ever heard that one about setting an example for the rest of your organisation to follow?

We’ve seen it with Zuma, politicians lower on the food chain pilfering whilst Number One turns a blind eye, but you know it’s all gone pear-shaped when the acting national police chief faces allegations of massive fraud and corruption.

Lieutenant-General Khomotso Phahlane is the man under the microscope, a police directorate affidavit presented in court this week revealing how he miraculously managed to reduce his household and vehicle debt by millions in just a matter of years.

Some background from News24 before we crunch the numbers:

It is an affidavit by principal IPID investigator Mandlakayise Mahlangu in support of a section 205 application to subpoena bank accounts and cellphone records…

He then lays out why he believes IPID has a strong case and should be given access to this information.

“During the investigation, the following facts were revealed and evidence in the form of sworn statements and documentary evidence, were collected and are contained in the case docket:

Those facts begin with how he made remarkable headway into reducing the bond on his property:

“Phahlane and his wife purchased a property in Sable Hills on 6 April 2010. The purchase price was R850 000. A bond was registered by Nedbank for R595 000;

On June 21, 2011, a second bond was registered for an additional R2 200 000. The current balance on the above mentioned bond is R258 777, which implies that Phahlane was able to reduce the bond with R2 536 233 in five years;

Phahlane also built a house for around R3 million, but some of the payments along the way raised eyebrows:

Phahlane first paid the contractor R350 000 in cash, second payment was also R350 000 in cash, and R10 000 in cash…

Subcontractors were also paid in cash by Phahlane through his driver Alwyn from the boot of a black BMW vehicle…

R170 000 for plaster was paid in cash on a fortnight basis…The electrician was paid also in cash about R10 000 four to five times, which possibly amounts to R40 000 or R50 000.

Those cash payments go on, including to the plumber and tiler, with an additional R129 000 paid to builders for additions like security walls and swimming pools.

Our acting police chief sure has access to some cold, hard cash, and why is his driver paying cash from the boot of his car?

Then there are the vehicles – this below is just a snippet of some of the questionable outlays:

On the 22 of August 2014, Phahlane purchased a new vehicle. This vehicle was financed by Standard Bank. The initial loan amount was R1 077 458. The current balance on the account is R367 698, which implies that he was able to reduce the balance in two years with R700 000.

On 29 April 2016, Phahlane purchased a Volkswagen Amarok. The listed price for the vehicle was R540 000. Phahlane appears to have only financed R197 031 of the purchase price. This indicates that he paid a deposit of R342 969…

On 6 January 2016, Phahlane purchased a Toyota Hilux. This vehicle was not financed, which implies that it was paid for in full settlement. The purchase price was around R434 000

Oh – add the Range Rover Sport bought in October, with a current loan from Standard Bank standing at R1 258 178, and the two vehicles purchased by his wife in January of 2015 and 2016.

Must be a plush job this police chief gig, as the IPID info points to at least R4,2 million in reduced debt in the last five years without taking the cash payments into consideration.

Let’s hear the spin doctor in action:

Phahlane’s spokesperson Colonel Athlenda Mathe responded that “it is common knowledge that the matter referred to is a subject of a litigation process which is to be deliberated before a court of law”.

“The department will not dignify any questions in this regard, outside the boundaries of the court.”

Ah yes, the classic ‘won’t dignify this with a response’ angle – a real political favourite.

Oh well, at least we have a dignified and honest man running the Ministry of Finance. Huh, what’s that?

[source:news24]