Nearly two decades after defrauding the Northern Cape Department of Health, 71-year-old Gaston Savoi has been sentenced in the Pietermaritzburg High Court. Savoi, the owner of Intaka Holdings, pleaded guilty to four counts of fraud and six counts of corruption related to a scheme that cost the government over R100 million.
The fraud occurred between 2004 and 2007 and involved the sale of overpriced water purification units (Watakas) and self-generating oxygen units (Oxyntakas) to the Northern Cape Department of Health and the KwaZulu-Natal Department of Local Government, Housing, and Traditional Affairs.
Savoi entered into a Section 105A plea and sentence agreement, which resulted in a sentence of a R5 million fine or 10 years imprisonment, with an additional 10 years imprisonment suspended for five years. As part of the agreement, the court also issued a R60 million confiscation order in favor of the state, and Savoi was required to pay R15 million towards the costs incurred during the Asset Forfeiture Restraint Application proceedings.
The National Prosecuting Authority (NPA) and the Hawks, in a joint statement, explained that the plea deal brought an end to the long-running case, which had been delayed by numerous legal challenges. NPA spokesperson Natasha Ramkisson-Kara noted that Savoi’s cooperation in assisting the state with ongoing proceedings against other government officials was a key factor in the agreement.
In 2022, Savoi’s co-accused, Dumisani Sipho Derrick Shabalala, was sentenced to 15 years in prison for fraud, corruption, money laundering, and violating the Public Finance Management Act (PFMA) in connection with over R1 million in illegal activities.
The NPA sees the plea deal as the most efficient resolution to this complex and protracted case.
Source: IOL