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Cosatu welcomes ex-MP Vincent Smith's seven-year prison sentence in Bosasa scandal

Staff Reporter|Published

Former ANC MP Vincent Smith, appearing in court in his bid to access funds to pay for his defence in his criminal trial. His application was turned down and eventually this week he was convicted and sentenced to an effective seven years in jail.

Image: Supplied

The Congress of South African Trade Unions (Cosatu) has welcomed the sentencing of former Member of Parliament Vincent Smith to seven years in prison for his involvement in the Bosasa state capture and corruption scandals while serving as the chairperson of parliament’s Portfolio Committee on Correctional Services.

“The Bosasa corruption scandals marked a particularly shameful chapter during the decade of state capture. The Federation has been deeply frustrated by the slow pace at which the NPA has moved to prosecute and secure convictions, sentencing and the confiscation of assets of persons involved in the Bosasa and other corruption matters.

“We, however, welcome this significant milestone and hope that it signals a decisive shift forward by the NPA in bringing to justice those who have brought shame to the nation and looted public funds with little consequence,” the labour federation said in a statement on Thursday. 

The Johannesburg High Court handed down a sentence of seven years' direct imprisonment to Smith following a plea and sentence agreement with the state.

Judge Mahomed Ismail accepted the plea agreement in accordance with Section 105A of the Criminal Procedure Act.

During the proceedings, the judge expressed grave concern over what he characterised as a "scourge" of corruption that has infiltrated various levels of society, asserting that it necessitated decisive action.

Smith pleaded guilty to charges that include Contravening Section 7 of the Prevention and Combating of Corrupt Activities Act 12 of 2004 (PRECCA), fraud, money laundering and the Contravention of the Tax Act. He was subsequently sentenced to 12 years on each of the counts, with each suspended for five years on condition that he does not commit similar offences during the suspension period.

He will effectively spend seven years in prison for his actions.

National Prosecuting Authority's Investigations Directorate Against Corruption (IDAC) spokesperson Henry Mamothame said the conviction relates to the corruption and fraud charges in his personal capacity as well as in his capacity as a sole director and shareholder of Euroblitz 48. He failed to disclose to the registrar of parliamentary members' interests the gratification he received from Bosasa, pursuant to the corrupt activities with which he, Euroblitz 48, and Agrizzi were charged.

He further failed to disclose the taxable income of Euroblitz between March 2009 and July 2018, totalling approximately R28 million. Charges against Euroblitz were, however, withdrawn. 

The Johannesburg High Court has sentenced former MP Vincent Smith to seven years of direct imprisonment after reaching a plea and sentence agreement with the state.

Image: Henk Kruger/Independent Media

Prosecution team commended

National Director of Public Prosecutions, Adv Andy Mothibi, said in as much as the trial took longer than anticipated to be finalised, the wheels of justice finally got in motion and the rule of law was upheld.

"I commend the prosecution team involved in the matter,” Mothibi said. 

About six months ago last year during his trial, Smith suffered a major blow after he was refused access to more than R2 million to fund his defence.

IOL previously reported that Smith faced charges that he received payments totalling R600,000 from Bosasa (now African Global Operations) chief operations officer Angelo Agrizzi, who was his co-accused in the matter alongside Smith’s company, Euroblitz 48. The company gave services to government, especially services related to the correctional sector.

The NPA also accused Smith of trying to return the favour to Bosasa by rubbishing a high-level probe into tender fraud at the Department of Correctional Services conducted by the Special Investigating Unit when the matter came before the Portfolio Committee on Correctional Services, which he chaired in Parliament at the time.

Earlier last year, the Gauteng High Court, Johannesburg, Acting Deputy Judge President Thifhelimbilu Mudau dismissed with costs Smith’s application for the release of the funds he sought in terms of the Prevention of Organised Crime Act (Poca).

Welcoming the conviction and sentence, Cosatu also said the outcome of the case sent a positive message to society that the wheels of justice are beginning to move. 

“That this has happened to a former parliamentary committee chairperson and member of the ruling party is a powerful affirmation that the rule of law must and will apply to all, no matter how powerful, and in particular to those entrusted by society to lead government. 

The union federation applauded the moment, but called on the government to provide the NPA with the resources it requires to “win the war against state capture and corruption, in particular filling prosecutorial and other critical vacancies”.

“The South African Police Service, Hawks, Judiciary and other law enforcement organs too require the funds and other support needed to remove this cancer that has afflicted every facet of society,” Cosatu added in a statement issued by its Parliamentary Coordinator, Matthew Parks.

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