The National Prosecuting Authority (NPA), which has in the recent past been accused of failing to present strong evidence against several high-profile individuals implicated in alleged state capture, has once again claimed that it has a strong case against former SAA accountant, Yakhe Kwinana.
Last week, National Director of Public Prosecutions Shamila Batohi disclosed that the NPA would not be pressured into prosecuting state capture-related cases following a series of blunders including the matter involving former Eskom CEO Matshela Koko and others, which was struck off the court roll due to unreasonable delays.
Kwinana appeared briefly before the Palm Ridge Specialised Commercial Crimes Court on Tuesday, facing serious allegations related to unauthorised auditing contracts and fraud concerning the national air carrier, dating back to 2011.
In an affidavit she submitted in support for her bail application, she argued that she did not receive enough time to consult properly with (her) legal representatives, nor had she been able to access the docket.
The charges stem from Kwinana’s alleged failure to disclose significant past contractual relationships with two entities – PricewaterhouseCoopers (PwC) and Nkonki Incorporated – that were awarded a lucrative R59 million tender to act as joint auditors for SAA for the financial year 2011/12.
The gravity of the situation is underscored by the subsequent stripping of her practice licence by the South African Institute of Chartered Accountants following the allegations.
She was granted R20 000 bail. NPA spokesperson Phindi Mjonondwane emphasised the authority’s readiness to prosecute, asserting the strength of their case against Kwinana.
“We believe that we have a strong case as the case was enrolled after the public prosecutor established that there are prospects of successful prosecution,” she stated.
“We are well aware of the hard work that still has to be done in terms of fighting the scourge of corruption that has plagued our country.”
Mjonondwane underlined the importance of the Auditor-General South Africa (AGSA), which is constitutionally mandated to prepare reports on the financial affairs of government entities.
She noted that in September 2011, SAA consulted the AGSA on the appointment of PwC and Nkonki, which the AGSA subsequently approved.
However, Kwinana’s alleged lack of disclosure concerning her previous contractual relationships with these firms is at the core of the allegations against her.
As the chairperson of SAA’s audit committee and a member of its accounting authority, Kwinana is accused of failing to comply with her fiduciary duties under section 50 of the Public Finance Management Act (PFMA).
The NPA asserts that her omissions harmed the proper administration of SAA’s affairs and compromised public trust. “Her failure to disclose was also prejudicial to the public who are entitled to procurements by organs of state that are fully compliant with the prescripts of the Constitution,” the NPA suggested.
The case has been postponed to January 29 as the NPA continues to prepare for what they anticipate will be a pivotal moment in combating corruption in South Africa.
The Star