BILAL Zikhali was recently sentenced in the Pinetown Magistrate’s Court after he pleaded guilty to stealing R1.6 million of state money intended for a business that was looted during the July 2021 unrest.
Durban — The Small Enterprise Finance Agency (Sefa), a state organisation, has appointed forensic investigators to determine how R1.6 million that was paid into the account of a supplier was squandered.
Bilal Zikhali was recently sentenced in the Pinetown Magistrate’s Court after he pleaded guilty to stealing R1.6m of state money intended for a business that was looted during the July 2021 unrest.
Zikhali had been listed as a supplier to a Durban production company that suffered an estimated loss of R2.8m after being looted.
In a bid to revive the looted company, the business sought relief from the government by applying to Sefa.
Zikhali was employed as a site agent and was also the director of his own production company. His production company had been contracted as a supplier of broadcasting equipment by the looted business. Monies paid out by Sefa are deposited directly into the accounts of listed suppliers in the application instead of the company itself.
The R1.6m paid into the account of Zikhali’s company was transferred from his business into his personal account.
Police investigations found that the money was also allegedly distributed to 19 other account holders by Zikhali.
He was handed an eight-year sentence suspended for five years on condition that he kept to the agreed payment plan of 60 equal instalments.
He has already paid R100 000 of the money ahead of his sentencing.
Sefa CEO Mxolisi Matshamba said the court outcomes of Zikhali’s matter would be included in the forensics terms of reference.
“This behaviour is reprehensible, and we hope for justice as these funds were meant to support SMMEs.
“We are pleased that our client has been vindicated.
“It is essential to highlight that Sefa disburses funds on behalf of the client to the chosen supplier, and the contractual obligation to supply lies between the client and the supplier,” said Matshamba.
He said since December last year, Sefa had granted R97m to approximately 244 clients whose businesses were looted during the unrest in 2021.
“Sefa pays suppliers directly to ensure that funds are utilised for the intended purpose.
“However, it is important to note that direct payment to the supplier or client depends on the nature of the support.
“For instance, working capital is paid directly to the client, making the nature of the support a crucial consideration,” said Matshamba.
He said as a government agency, Sefa was mandated to support SMMEs and co-operatives to contribute to job creation, poverty alleviation and economic growth.
“Corruption and theft undermine this purpose.
“Sefa maintains zero-tolerance for such behaviour and is committed to ensuring accountability for all those involved in the transactions.”
Sunday Tribune