The former Chief Executive Officer of Transport Education and Training Authority (TETA) has been jailed to an effective seven years direct imprisonment.
The National Prosecuting Authority (NPA) in the Western Cape confirmed the sentence handed down to Pieter Hendrick Bothma.
The 64-year-old was found guilty on fraud, corruption, and money laundering charges in the Palmridge Commercial Crimes Court.
NPA spokesperson Eric Ntabazalila said the charges against Bothma stem from the investment of funds (skills development) of TETA with Fidentia Asset Management (Pty) Ltd between 2003 and 2005.
The amount invested was over R200 million.
The NPA said R15 million was returned to TETA in September 2003.
Bothma was the third person to be arrested in connection with the scandal which saw him receive just over R5 million in kickbacks.
He was arrested in 2007 by the Scorpions and released on R200,000 bail.
Explaining the merits of the case, Ntabazalila said Bothma failed to disclose to the board that the promissory notes had already been sent to Maddock Inc. in 2003 and instructed Fidentia Asset Management to sell one of the PN’s before the maturity date.
“He did not inform the board that he had authorized and instructed the sale of one of the promissory notes authorised the investment of a further R50 million with Fidentia Asset Management and instructed the funds to be transferred to Maddock Inc,” Ntabazalila said.
“He decided to re-invest the funds with Fidentia Asset Management without disclosing to the board of TETA that he had already done so, decided, and authorized the investment of a further R50 million with Fidentia Asset Management during April 2004, and instructed the funds to be transferred to Maddock Inc on 16 April 2004.”
The NPA said Bothma decided and authorised the re-investment of the promissory notes and R100 million cash with Fidentia Asset Management every year.
“His actions and failure to disclose the true position induced TETA and the Board to act to the actual or potential prejudice of TETA,” it said.
“For his actions, the accused received R1.9 million and R4.2 million from Steven William Goodwin and JAW Brown to ensure the TETA funds were moved from PLJ and invested with Fidentia Asset Management.”
The NPA said the corrupt relationship between Goodwin, Brown and the accused ensured that Fidentia Asset Management had access to liquid funds to purchase the buildings in Century City, luxury cars for directors of the company — Rudi Bam, Maddock, Brown, and others and purchase the beachfront property Brown lived in.
“Bothma laundered the monies he received through the accounts of various individuals and entities to disguise the true nature of the fund, whilst he knew that the funds were the proceeds of unlawful activities.”
Bothma’s application to appeal the conviction and sentence was dismissed.
In 2009, Steven William Goodwin was sentenced to a total of 50 years imprisonment on 36 counts of fraud, corruption and money laundering. Goodwin entered into a plea and sentence agreement.
The NPA said Goodwin would serve a minimum of 10 years.
IOL News