Two payments of R671,000 and undeclared business tax of R22 million have landed former chair of the portfolio committee on correctional services, Vincent Smith in hot water.
Smith handed himself over to the Alberton police station in the East of Johannesburg on Thursday morning. This comes after the independent directorate (ID), a new investigating unit established by President Cyril Ramaphosa last year filed criminal charges against him. He later appeared in court and was granted bail.
According to the Hawks, Smith was arrested over a bribe from Bosasa that he accepted in 2015. The security services company, which now goes by the name African Global Operations wanted to continue securing government tenders worth billions.
As head of the correctional services committee in parliament, Smith lobbied for security services to be outsourced. This would ensure that Bosasa retained the contracts it had with the state.
Vincent Smith gives evidence at state capture enquiry
At the Zondo commission last year, Smith admitted to receiving the money but denied that he was under the influence of Bosasa. He said he used the bribe money to pay for his daughter’s university fees in Wales where she is currently studying.
A state of the art security system worth R40,000 was installed at Smith’s house. The upgrades were paid for by Bosasa which also installed a similar system at former environmental minister Nomvula Mokonyane’s house in Krugersdorp.
Payments totalling R22m were made to Euro Blitz, a company owned by Smith which he failed to declare with the taxman. Charges of fraud are also being investigated by Sars and the ID.
Smith’s arrest comes in the wake of six officials who were apprehended over an asbestos deal worth R255m in the Free State. The Zondo commission has been hearing evidence related to the deal and other tender corruption based matters since last week Monday.
According to Hawks spokesperson Hangwani Mulaudzi, the officials include businessman Edwin Sodi, former Mangaung mayor Olly Mlameli and Nthimotse Mokhesi, former HOD for human settlements in the Free State will appear in court on Friday.
