RUSTENBURG HERALD - RUSTENBURG - Bailey Mahlakoleng (56), the former Head of Department at the North West Department of Community Safety and Transport Management, pleaded guilty on contravention of the Public Finance Management Act relating to the SA Express matter. The accused made a guilty plea in the North West High Court on Friday, 22 November, and was subsequently sentenced.
His sentencing emanates from an investigation by the Hawks’ Serious Corruption Investigation into allegations of flouting procurement processes when the North West Department of Community Safety and Transport Management entered into a contract with SA Express in 2015 to provide airline services for the province.
Reports indicate that in 2014, the North West Provincial government resolved to revitalise the Mahikeng and Pilanesberg airports to accommodate the transportation of passengers and goods. Subsequent to this, a meeting was held in August 2014, attended by MECs and other high-ranking government officials, where six airlines made presentations about flight services they could offer the province.
Following the meeting, the HOD prepared and sent a memorandum to the province’s EXCO, putting forward SA Express as the preferred service provider. The memorandum reportedly sought approval from the province’s EXCO.
Upon entering into a five-year contract with the department, SA Express appointed three different management companies for ground handling services. In terms of the agreement, the department had to pay an amount of approximately R409 million to SA Express and management companies over a five-year period. The contract ended after three years, and at this stage, the department had suffered a loss of R186 million. Over R83 million was paid to the three management companies. It was discovered during the investigation that no ground handling services were rendered by the appointed companies. Further probe revealed that three other accused, whose matters are before court, have unduly benefited from the funds paid to SA Express.
As an accounting officer, Mahlakoleng failed to follow proper procurement processes when appointing SA Express. He was arrested in September 2022 and released on bail. After making a series of court appearances, the accused entered into a plea and sentencing agreement with the State on three PFMA charges. Mahlakoleng has offered to plead guilty in respect of section 38 of the PFMA charges on condition that he receives a non-custodial sentence, which was accepted by the State. The main reasons for accepting the plea offer were that he did not receive any of the stolen funds and he is a first offender and acted under pressure when he yielded to the instruction from his political bosses not to follow correct procurement procedures when SA Express was appointed. He was sentenced to two years imprisonment or R200 000 fine.
A further five years imprisonment, suspended for a period of five years on condition that during the suspension, he is not found guilty of contravening PFMA or an offence of which dishonesty is an element.
The North West acting Hawks Head, Brigadier Silas Munzhedzi and the Director of Public Prosecutions in North West, Dr Rachel Makhari, have welcomed the sentencing. They have commended collaborative work between the two entities in ensuring that the accused is brought to justice.
