National Police Commissioner Fannie Masemola is facing the prospect of arrest over the irregular procurement of crime intelligence buildings valued at more than R120 million, sources have revealed. The potential arrest stems from an investigation into the looting of the crime intelligence secret service account, also known as a slush fund.
The inspector-general of intelligence has recommended a criminal investigation into the transactions, which were signed off by Masemola. Sources indicate that an application for Masemola’s arrest warrant is prepared for presentation to a magistrate.
Masemola could soon join crime intelligence head Dumisani Khumalo and others in the dock, as the investigation into the alleged misuse of the secret service account continues. The account receives an allocation of just over R600 million annually, intended for paying police informants throughout the country in exchange for information about criminal syndicates and their activities.
Due to the secretive nature of these transactions, there is limited scrutiny of how the funds are used. Informants are typically paid in cash, and a handler's word is often accepted as proof of payment, creating opportunities for abuse.
This week, Khumalo and seven other senior crime intelligence unit officials were arrested on charges of fraud and corruption. They appeared in the Pretoria Magistrates’ Court and were each granted R10,000 bail.
City Press has learnt from four senior security cluster sources that moves to arrest Masemola are at an advanced stage, with investigators focusing on the multimillion-rand acquisition of four buildings by crime intelligence.
At the centre of the investigation is the decision by the police to buy five buildings without going through the normal procurement process through the department of public works. The department is the custodian of government buildings and sources buildings on behalf of government departments according to their specified needs.
One source stated that "the president is also informed about the ongoing issues within the police service and that Masemola, as an accounting officer, faces arrest."
The crime intelligence cluster allegedly splurged more than R120 million on properties in Gauteng, the Free State, and KwaZulu-Natal. Masemola’s signature, as well as Khumalo’s, feature prominently on the property deals that allegedly did not follow proper procurement processes.
According to sources, the buildings accommodate members of the crime intelligence unit running special operations, the National Intervention Unit, the political task team, and some ordinary detectives.
“He [Masemola] might be arrested as early as next week if all goes well. The application for his arrest warrant is ready to be presented to the magistrate, and I don’t see why it would not be granted,” another source said.
The source added that the pending charges against Masemola stem from the irregular purchase of the buildings. These include two boutique hotels and three other buildings in Gauteng, as well as one in the Free State and another in Durban.
City Press has learnt that Inspector-General of Intelligence Imtiaz Fazel recommended that criminal charges be preferred against those involved in the procurement process of the buildings, including the police commissioner.
One source revealed that "the IGI [inspector-general of intelligence] found that there were some financial discrepancies and that the market was not tested to ensure a competitive process. The buildings were also found to have been purchased at above market price, with some buildings having been purchased for an amount more than they were initially advertised for."
According to the sources, the inspector-general’s investigation – which was allegedly frustrated by the two officials citing secrecy clauses and state security concerns, with a senior minister trying to stop the process – found several irregularities that required a criminal investigation.
One source revealed: “You cannot investigate the transaction while you have both Masemola and Khumalo holding their positions. Police Minister Senzo Mchunu has been trying to root out corruption, but they have been undermining him and are instead reporting to the former minister Bheki Cele.”
This is not the first time that a sitting police commissioner has faced trouble involving building transactions.
In 2010, then national police commissioner Bheki Cele was fired from his position due to his involvement in a controversial building lease scandal. At the time, then Public Protector Thuli Madonsela found that government had leased office buildings, intended for police headquarters, at inflated prices. This led to a board of inquiry that deemed Cele to be dishonest and unfit for office, recommending his dismissal. He was suspended in October and later fired by then president Jacob Zuma.
In 2019, the Pretoria High Court set aside a 2012 decision to fire Cele, who was then the minister of police. Cele said he was vindicated by the judgment.
Masemola’s predecessor, Khehla Sitole, did not complete his term in office after having a serious fallout with Cele. He took early retirement and left the police service.
The SA Police Service referred media enquiries to the IDAC.
IDAC spokesperson Henry Mamothame said: “We do not comment on matters under investigation. IDAC is not in the process of getting a warrant of arrest for the national police commissioner.”
Despite the IDAC's denial, the mounting evidence and multiple sources suggest that Masemola's position is increasingly precarious. The potential arrest of the national police commissioner would further damage the reputation of the police service and raise serious questions about the integrity of its leadership. The investigation is ongoing, and the situation is developing rapidly.
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