Security bosses take R384m tender fraud case to Supreme Court

THE DIRECTORS of Defensor Electronic Security Systems (Pty) Ltd, Gert Renier van Rooyen, 66, and Claudius Gerald Peterson, 61, will approach the Supreme Court of Appeal after their application for leave to appeal in the Northern Cape High Court was dismissed last week.

Their bail of R10,000 was extended pending the appeal.

The legal representative for the accused, senior advocate Willem Edeling, stated that Defensor Electronic Security Systems had been placed in business rescue and was in the process of liquidation

Acting Judge Chwaro convicted the accused of fraud and contravening the Private Security Industry Regulation Act (PSIRA) in the Northern Cape High Court on August 11, relating to a R384 million security tender awarded by the Northern Cape Department of Health.

The former head of the Department of Health, Stephen Jonkers, was acquitted of all charges relating to contravening the Public Finance Management Act (PFMA). He was recently appointed as the head of the Northern Cape Department of Roads and Public Works.

Both Van Rooyen and Peterson were sentenced to six years’ imprisonment, of which three years were suspended for five years on condition that they are not convicted of fraud, attempted fraud, theft or attempted theft during the suspension period.

They were also handed an additional fine of R10 000 each, wholly suspended.

Defensor Electronic Security Systems was ordered to pay a fine of R1.5 million by March 31, 2026, as well as a further R10,000 fine, wholly suspended for five years for contravening the PSIRA Act, on condition of no repeat offence.

Chwaro found that the accused had dishonestly submitted a bid for the security tender while knowing that the company was registered under the PSIRA number of a different company.

He, however, believed that there were substantial and compelling circumstances to deviate from the prescribed minimum sentences. 

He noted that Van Rooyen was the sole breadwinner with three financially dependent children.

“He is of an advanced age and is a first offender. Peterson is suffering from ill health and is taking chronic medication. He had to be hospitalised last year.”  

Trial delays

National Prosecuting Authority (NPA) Northern Cape spokesperson Mojalefa Senokoatsane said the matter, which spanned more than two years, was marked by extensive litigation, including several applications brought by the defence.

“These included an application for the recusal of the presiding judge, which the court dismissed, finding no evidence of conflict or bias. Earlier in the proceedings, the court also dismissed the defence’s Section 174 application, where the accused argued that the State had failed to establish a prima facie case. The court found that the prosecution had indeed presented sufficient evidence for the trial to proceed.”

He added that the defence also challenged the admissibility of the tender tax clearance and PSIRA certificate and Defensor’s bid documents submitted for the security tender. 

“The defence argued that these documents were not the original versions submitted during the tender process. After hearing arguments, the court ruled in favour of the State and admitted both documents as evidence. To date, the defence has been unsuccessful in all applications brought in this matter.”

He added that the prosecution, represented by senior State advocate Isaac Mphela and State advocate Jean Booysen, successfully demonstrated that Defensor Electronic Security Systems and its directors knowingly applied for a security tender valued at over R384 million, despite failing to meet the fundamental requirements to qualify. 

“The company did not possess a valid PSIRA licence, nor did it have the necessary SARS compliance documents. Despite these deficiencies, Defensor was initially identified as the preferred bidder, even though it did not meet the basic eligibility criteria for the security tender issued by the Northern Cape Department of Health.”

SCCU to determine if further legal action is needed

The regional head of the Specialised Commercial Crimes Unit (SCCU) in the Northern Cape, advocate Brian Mdlalose, commended the prosecution team and the investigators from the Directorate for Priority Crime Investigation (DPCI).

“The first leg, now concluded, focused on public procurement fraud, and the second leg, currently under way, will target all illegal beneficiaries of the fraudulent contract payments amounting to R384 million.”

Mdlalose said the NPA would study the record to determine whether further legal action was warranted.

“Should there be sound legal grounds for appeal or review, a decision will be taken in due course. The NPA believes that the custodial sentences imposed in this matter send an unambiguous message: white-collar criminals who defraud the state will be held accountable. Crimes that deplete the public purse and compromise service delivery erode public confidence and the rule of law.”

Northern Cape Hawks provincial head, Major-General Stephen Mabuela, welcomed the outcome.

“The sentence offers us hope. My appreciation goes to both the investigating and prosecutorial teams for their hard work,” he said.