Public Protector recommends former Seta CEO and his nephew be investigated for money laundering

Oupa Mopaki, a former sector education and training authority (Seta) CEO, faces a possible Hawks investigation for money laundering.

Mopaki’s contract was not renewed by the Media, Information, Communications and Technology Seta in March 2018, when he was facing a disciplinary hearing to answer to charges of misconduct, which were not divulged by the Seta at the time.

City Press understands that Public Protector Busisiwe Mkhwebane issued a recommendation to the Hawks in her final report on the Seta investigation in November. She said the Hawks should consider investigating Mopaki and his nephew, Tebogo Mashigwane, for money laundering.

City Press published a number of stories following the initial exposé in 2017 about Mopaki and Mashigwane’s alleged scheme, which allegedly milked the Seta of millions of rands between 2013 and 2018.

Subsequent to City Press’ stories, Mkhwebane’s office was approached by whistle-blowers to investigate allegations against Mopaki.

Mkhwebane, City Press understands, found that the Seta under Mopaki’s leadership paid a combined amount of R14 814 000 following an irregular procurement process to Lylacorp, Network Infraco and Bandwidth Technologies between 2013 and 2018, which are linked to Mopaki and Mashigwane.

This was part of the Seta’s mandate, which included a requirement to implement the national skills development programmes by issuing discretionary grant funding to qualifying employers and relevant levy-paying training providers that offered skills programmes.

According to regulations, employers claimed directly from the Seta after providing numbers; the Seta then paid the companies to cover the costs of transporting students and interns to training sites.

City Press understands that Mkhwebane’s investigators were able to find evidence from Mopaki’s computer drive that established, on a balance of probability, that:

• Mopaki had a business association and vested private interest at both Bandwidth Technologies and Network Infraco', which are owned by Mashigwane;

• Mopaki exchanged various explicitly business-related communication or/and emails and financial transactions with private companies contracted to the Seta, which are owned by Mashigwane;

• On the other hand, Mopaki signed and approved contracts or service-level agreements between the Seta and companies owned by Mashigwane without declaring them to the board of the Seta, which was a conflict of interest; and

• Prima facie evidence from Mopaki’s official laptop indicated that he was registered on the computer domain of both companies and engaged in business- and finance-related communications.

Mopaki declined to comment last week, claiming Mkhwebane had not handed him the report.

“The last time I interacted with the Public Protector was in June last year after formally receiving the preliminary and inquisitorial report.

“To date I have not heard from the Public Protector, therefore I cannot comment on the recommendation. I am awaiting the Public Protector’s final report with keen interest.”

City Press understands that Mopaki did not respond to Mkhwebane’s investigators about his relationship with Mashigwane.

Attempts to get hold of Mashigwane were unsuccessful.

However, City Press understands that Mashigwane confirmed to investigators that he was a nephew of Mopaki when asked about their relationship – information that was also verified with home affairs.

Hawks spokesperson Brigadier Hangwani Mulaudzi said: “The DPCI [Directorate for Priority Crime Investigation] can confirm that the matter was received in December 2019 and is receiving attention.”

The acting spokesperson for Mkhwebane’s office, Oupa Segalwe, said the report had been available on their website since December 12.

Msindisi Fengu Journalist | City Press

+27 11 713 9001 Msindisi.Fengu@citypress.co.za Media Park, 69 Kingsway Road, Auckland Park

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