Senior government official sentenced for fraud – SAPS Crime Report: 2021-11-30 19:46:14

Directorate for Priority Crime Investigation (HAWKS)

EASTERN CAPE: Mzoli Pakade (51) was sentenced to five years direct imprisonment for charges of fraud by Gqeberha Specialised Commercial Crime court on 29 November 2021.

Mr Mzoli Phakade who was a Senior Planner and Project officer at the department prepared documentation for the project to be signed off indicating that the farm should be registered in the name of CPAD Farms Holding Pty Ltd instead of the Trust.

This was after Mongezi Alfred Mde approached the Department of Rural Development and Land Reform as representative of CPAD Farm Holdings Trust to apply for financial assistance to purchase the farm Honeyville in Humansdorp through the Land Reform and Development Programme in February 2006.

The asking price for the farm and movable properties was R7.7 million. Thirty eight (38) additional applications were submitted to the department all indicating that the beneficiaries were all of the Mde clan and actively involved in the daily activities of the farm, applying for the grant on behalf of CPAD Farm Holdings Trust.

The official responsible for signing refused to sign off due to the condition that the farm would be registered in the name of the Trust, Phakade went ahead and instructed the conveyancing Attorney to transfer the farm into the name of CPAD Farm Holding Pty Ltd. He further wrote a letter to the Deeds Office indicating that the letter should be expedited.

It was later established that the 38 beneficiaries were not actively involved in the daily business of the farm and fraudulent documentation was submitted to the department in support of the application, that the Trust was in fact never even registered.

Phakade was arrested on 09 December 2016 for charges of fraud. After a series of court appearances at Gqeberha Specialised Commercial Crime Court (SCCC) he was convicted on 19 November 2021 hence his sentencing on 29 November 2021.Phakade was given a sentence of 5 years direct imprisonment by the SCCC with no option of a fine.

The Department approved the grant on condition that the farm will be owned by CPAD Farm Holdings Trust. The Department provided funding for the purchase of the farm at a cost of more than R2.6 million. Mde applied for a mortgage loan of more than R5 million at Land bank.

When the agreement of sale was completed, it was however completed with details of the purchaser as CPAD Farm Holdings Pty Ltd, an entity with name similar to that of the Trust, of which Mde was the sole Director and in which the 38 additional beneficiaries had no interest.

The Provincial Head Major General Obed Ngwenya commended the team for its dedication in uprooting the corrupt elements within the government department.

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