Forensic audits into fraud and corruption at the Gauteng Department of Social Development have unveiled a shocking scheme involving the misappropriation of at least R500-million from 2016 to 2018.
The investigation, conducted by law firms Bowmans and auditing firm BDO, has implicated numerous officials, with a senior figure at the centre of the scandal identified as July Maphosa, the former director for the sustainable livelihoods programme.
Maphosa oversaw a significant budget of approximately R250-million annually, which funded essential projects such as school uniforms, dignity packs, and food parcels for vulnerable communities. However, the audits reveal a troubling pattern of irregular payments made to for-profit companies through nonprofit organisations, raising serious concerns about the integrity of the department’s financial management.
Shortly after a fraud complaint was lodged against him by convicted car hijacker Japhta Mookang, Maphosa resigned from his position in 2018, citing "personal reasons." Although he faced charges related to the allegations, these were later withdrawn, and no further investigations were conducted.
Investigators have uncovered that Maphosa sent letters to nonprofit organisations directing them to appoint specific companies for the provision of goods and services. This practice was described in the reports as an “elaborate scheme to circumvent the normal supply-chain management processes.” It allowed Maphosa and others to bypass the necessary scrutiny typically required for such transactions.
Among the companies implicated in the fraud is Ubonyoninco, along with Pink Power Trading and Masinya Trading, all owned by Amanath Soorju. Previously the human resources director at the Department of Social Development, Soorju’s companies received substantial allocations—R28.5-million for dignity pack supplies and R32.4-million for food. Soorju, who referred to Maphosa as a “friend,” denied any conflict of interest and claimed he was unaware that Maphosa had instructed the nonprofits to contract his companies.
Compounding the allegations, invoices for Maphosa’s education at Cranefield College were found, addressed to Soorju. Soorju refuted claims that he funded Maphosa's studies, suggesting that his name might still appear in the invoicing system from his time overseeing the department's bursary programme.
The connections between these officials do not end there. In 2015, Soorju sold a property to Maphosa in Magaliesberg, near another property he considered renting to the Isidwedwe Clothing Cooperative, which also received funding from both the Gauteng Department of Social Development and the Department of Agriculture. Notably, Mpumelelo Nhlapo, a director of the cooperative, has been linked to multiple organisations that received millions from the department.
Nhlapo, who served as a director of Morithi Wa Sechaba, a nonprofit that received over R109-million from the department, is alleged to have funded Maphosa’s trip to Dubai, according to a whistle-blower. Although this allegation could not be fully substantiated, investigators discovered an invitation letter from a Dubai-based company addressed to both Maphosa and Nhlapo.
The Bowmans report details the flow of hundreds of millions in public funds through nonprofit organisations to private entities, many of which had direct links to department officials or shared directors. Investigators noted that Morithi Wa Sechaba received R17.6-million for dignity packs and R8.4-million for school uniforms, yet the organisation ceased operations, making it impossible to trace how funds were disbursed.
The findings also revealed that Winston Phahlane, another director of Morithi Wa Sechaba, issued invoices for DF Holdings, which received R8.5-million for the school uniforms project. Phahlane did not respond to inquiries regarding his involvement. Meanwhile, Pule Malopo, yet another director of Morithi Wa Sechaba, also led Kagisano, a nonprofit organisation that secured R30.6-million to manage the school uniforms project. Investigators noted that some funds were disbursed before a contract was signed, raising further red flags.
Kagisano’s operations were scrutinised, with investigators unable to verify expenditures related to its food programme, including a suspicious R3-million transferred to an unidentified bank account. Malopo’s company, LilyPlant, received R500,000 from Kagisano for various supplies, revealing deeper entanglements within the department's financial dealings.
Another director of Kagisano, Peo Boakgomo, also runs Godisang Development, which received R7.8-million for dignity packs and R29-million for school uniforms. Despite Godisang’s application being submitted after the deadline, it was still awarded funding, highlighting the department’s questionable decision-making processes.
The findings of the forensic audits have prompted serious concerns about the management of public funds. A significant portion of the R270-million allocated to the department’s nutrition programme between 2016 and 2018 was funnelled to private companies chosen by the department, including Soorju's firms and entities linked to Mookang and Nhlapo.
GroundUp has repeatedly attempted to reach the Gauteng Department of Social Development for comments on these allegations but has received no response since July. The Hawks are reportedly only now investigating the findings of these audits, five years after they were completed.
The implications of these revelations are profound, as they expose systemic corruption within the department and highlight the urgent need for accountability. With dozens of officials implicated and millions of rands misappropriated, the call for reform and oversight has never been more critical. The community deserves transparency and assurance that public funds are used to benefit those in need, rather than lining the pockets of a select few.
