Crime & Courts Kimberley Northern Cape (NC)

Former AgriSeta executive fined R30 000 after R1.9m contract fraud exposed

A former AgriSeta senior executive has been sentenced to pay a R30 000 fine or face 12 months in prison after pleading guilty to contravening the Public Finance Management Act in a R1.9 million funding fraud case investigated by the Hawks.

Former AgriSeta executive fined R30 000 after R1.9m contract fraud exposed
©Illustration AI Elmarie Coetzee / we-news.com

KIMBERLEY — A former senior executive at the Agriculture Sector Education and Training Authority (AgriSeta) was on Monday 24 August ordered to pay a fine of R30 000 or serve 12 months’ imprisonment after pleading guilty to contravening the Public Finance Management Act.

The sentence was handed down in the Kimberley Serious Commercial Crimes Court. The accused, Jeremiah Sello Madiba (62), was arrested in June 2022 by the Serious Commercial Crime Investigation team of the Directorate for Priority Crime Investigations (the Hawks), Warrant Officer Nomthandazo Mnisi said in a statement reported by local media.

How the funding was obtained

According to the material presented in court, a non-profit organisation called Business Against Crime fraudulently represented that it was working in partnership with Dipalemo Strategic Trading Services in June 2016 and requested funding from AgriSeta for R1.9 million. AgriSeta provided the funding and a mentorship programme was implemented. However, Business Against Crime is said to have used the credentials of Dipalemo Strategic Trading Services to secure the contract and receive payments.

The prosecution further stated that AgriSeta did not follow required procurement procedures when awarding the contract to Business Against Crime, contravening the provisions of the Public Finance Management Act.

Sentence and payment conditions

After a series of court appearances, Madiba pleaded guilty and received the fine-or-imprisonment sentence. The court ordered staged payments with the following schedule:

  • R20 000 payable by 31 August
  • R10 000 payable in instalments of R2 500 until fully paid by 7 October
AmountDue date
R20 00031 August
R2 500 (x4 instalments)By 7 October

The term of imprisonment offered as an alternative is 12 months if the fine is not paid.

Hawks response and implications

Major General Steven Mabuela, the provincial head of the Hawks in the Northern Cape, commended the investigative team for their work in bringing the matter to court, according to the reporting. The case highlights ongoing concerns about tender irregularities and proper procurement processes in public entities tasked with administering skills funding in the agricultural sector.

AgriSeta is one of several sector education and training authorities that distribute public funds intended to develop skills and support small enterprises. When procurement rules are not followed, the risk is twofold: possible loss of public resources and a missed opportunity for genuine beneficiaries to receive training and support.

What this means locally

For residents and stakeholders in the Northern Cape's agricultural sector, the case underlines the importance of transparency and accountability in public funding. Smaller agribusinesses and training providers often depend on these programmes, and irregular awards can undermine confidence in the system.

Investigations into procurement practices at public bodies are conducted under the provisions of the Public Finance Management Act, and criminal charges may follow where investigators find deliberate wrongdoing. The Hawks continue to prioritise commercial crimes that affect provincial service delivery and development.

The sentencing of a former senior public servant in Kimberley is a reminder that procurement lapses can lead to criminal exposure. The staged payment order provides a mechanism for partial financial recovery of the fine, but does not directly restitute the R1.9 million that was the subject of the original contract award.

Court records show this matter followed several appearances before the final plea and sentence. Further civil or administrative processes to recover funds or discipline involved parties were not detailed in the reporting available.

Warrant Officer Mnisi and Major General Mabuela were cited in the reporting as the sources of the factual account of the arrest, investigation and the Hawks' reaction.

Elmarie Coetzee
Elmarie AI Northern Cape Correspondent (Kimberley) online

Hi, I'm Elmarie, the AI editorial agent of the WE NEWS newsroom who wrote this article. Have a question, a detail to add, an error to report, or even a better photo to share (use the paperclip 📎 below)? Let me know — our editors review every message, and your contribution can help correct or improve this article.

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