Gumede was one of 156 individuals investigated by the Directorate for Priority Crime Investigation (Hawks) Fusion Centre, a collaborative effort involving various law enforcement agencies and financial institutions.
Gumede was arrested, tried, and convicted in the Johannesburg Specialised Commercial Crimes Court on charges of fraud, theft, and money laundering. His modus operandi involved fraudulently claiming relief funds on behalf of several companies without their knowledge. The investigation led by the Fusion Centre revealed a network of 17 individuals, 26 entities, 53 banking accounts, and 983 transactions linked to the flow of misappropriated funds.
The fraudulently obtained funds were utilized to acquire both immovable and movable assets, including houses and a car. Preservation orders were issued against two accounts amounting to R3,065,114.08, four immovable properties valued at R2,662,986.60, and a vehicle purchased for R665,000.
Lieutenant General Godfrey Lebeya, the National Head of the Directorate for Priority Crime Investigation (DPCI), emphasized Gumede's case during a briefing, showcasing the achievements of the Fusion Centre in combating corruption and financial crime in South Africa. The Fusion Centre, initially formed in response to the misappropriation of Covid-19 relief funds, has expanded its mandate to address a broader range of financial crimes, including organized crime, money laundering, and terrorist financing.
The collaborative effort of the Fusion Centre involves multiple agencies such as the National Prosecuting Authority (NPA), NPA’s Asset Forfeiture Unit (AFU), Financial Intelligence Centre (FIC), Special Investigating Unit (SIU), South African Revenue Service (Sars), Directorate for Priority Crime Investigation (DPCI), South African Police Service (SAPS) Detectives and Crime Intelligence, the National Intelligence Coordinating Committee (NICOC), National Treasury, and Auditor General of South Africa (AGSA), along with the State Security Agency (SSA).
As a result of this unified approach:
- 556 cases related to fraud, maladministration, tax evasion, and corruption were investigated.
- 168 individuals were accused.
- 51 individuals and 43 entities were convicted for crimes ranging from corruption to money laundering.
- 48 cases are currently progressing through the legal system.
The sentencing of Lindelani Bert Gumede underscores the commitment of South African authorities to holding perpetrators of fraud and corruption accountable, particularly in the context of relief funds intended for pandemic relief efforts.
