Former PAC leader avoids jail time after fraud conviction

Former Pan Africanist Congress of Azania (PAC) president Luthando Mbinda has been spared direct imprisonment after being convicted of fraud involving nearly R1 million in public funds.

The 64-year-old was sentenced in the Specialised Commercial Crimes Court in Bellville, where the magistrate handed down correctional supervision and a wholly suspended custodial sentence.

During sentencing, the court considered Mbinda’s circumstances, including his age, medical conditions, and family support, as well as the seriousness of the offence and the broader public interest.

Medical records confirmed that Mbinda suffers from chronic illnesses, including hypertension and diabetes, and requires ongoing treatment. The State acknowledged the records were dated, but did not contest his need for continuous medical care.

A probation officer’s report described Mbinda as a married father of eight minor children with no previous convictions, who had fully cooperated with court proceedings.

His family, including his wife and children, had provided consistent emotional support.

The officer assessed Mbinda as a minimal risk to reoffend and recommended a suspended sentence, noting that the fraud was not committed for personal gain but stemmed from internal party issues within the PAC.

The report also recommended he attend a counselling programme.

The State opposed a fully suspended sentence but supported correctional supervision, arguing it would serve as both punishment and deterrent, especially given the misuse of public funds.

The magistrate acknowledged that although the amount was not excessive, the fraud had been carefully planned.

Mbinda had created bank accounts in his own name, 'LR Mbinda trading as Azania 2019', and submitted these to Parliament while using PAC letterheads.

This resulted in nearly R1 million in constituency funds being redirected from the official PAC account to the fraudulent accounts solely controlled by him.

The court found that Mbinda had misled Parliament and undermined party structures, though it accepted that there was no evidence of personal financial gain.

“He was dishonest,” the magistrate said.

“And while there may have been no personal gain, his actions diverted public funds.”

The magistrate stopped short of imposing direct imprisonment, citing his clean criminal record, medical needs, and the political context in which the offence occurred.

“This was poor judgment rather than criminal intent,” the magistrate said.

Mbinda’s sentence includes: three years of correctional supervision; house arrest from Monday to Friday between 6am and 8pm, Saturday 6am and 4pm and Sundays between 6am and 2pm; he may not leave home without permission and must be available for unannounced visits by correctional officers; 16 hours of community service per month in Mdantsane for 18 months; mandatory attendance of behaviour modification, life skills, and personal responsibility programmes; all medical appointments must be pre-approved and properly documented.

In addition, he received a five-year custodial sentence wholly suspended for five years, on the condition that he is not convicted of any similar offence involving dishonesty during that time; although five years were imposed, the effective sentencing period was reduced to three years; he has also been declared unfit to possess a firearm.

Mbinda was convicted on April 14 this year after a Hawks investigation by the Serious Commercial Crime Investigation unit in Bellville.

Hawks spokesperson Warrant Officer Zinzi Hani said he was found guilty of fraud amounting to R995 670.20 but acquitted on charges of money laundering. Mbinda had handed himself over on April 9, 2021.

Two co-accused were initially arrested with him but were cleared of all charges on January 22 last year.

The court found that Mbinda had, on March 13, 2019, fraudulently opened two FNB accounts under his name and asked Parliament’s Finance Department to deposit funds owed to the PAC into those accounts, bypassing the official ABSA account. Parliament then transferred R995 670.20 into the FNB accounts between March 22 and April 4, 2019.

The funds, meant for the PAC’s operational and constituency purposes, were instead diverted and controlled solely by Mbinda. Both the party and Parliament suffered actual financial losses.

Mbinda was expelled from the PAC on June 14, 2017, two years before the fraudulent scheme.

Speaking after sentencing, Mbinda maintained his innocense and insisted the act was a result of negligence, not criminal intent.

“I see it as either negligence or violating parliamentary policies, in that instead of opening the account in the name of the political party, I opened it under LR Mbinda, my name, trading as Azania, which is also the PAC,” he said.

“The account was never used for personal reasons but for the constituency.”

He said he would appeal the conviction.

Cape Times