NPA secures a Fidentia-related conviction (17 years later) after ex-Teta boss sentenced

The 64-year-old Bothma was sentenced to seven years direct imprisonment for fraud, 14 years direct imprisonment for two counts of corruption and seven years direct imprisonment for money laundering. The sentences will run concurrently.

The sentences are directly related to Bothma authorising the investment of R245-million worth of the Transport Education and Training Authority (Teta) funds with Fidentia Asset Management between 2003 and 2005. A paltry R15-million was returned to Teta in September 2003.

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Senior State Advocate Thersia Du Toit-Smit led evidence that Bothma falsely, and with intent to defraud, issued instructions for two promissory notes held on behalf of Teta to be transferred to Maddock Inc; and signed a non-discretionary mandate with Fidentia Asset Management authorising the investment of the promissory notes on behalf of Teta. He failed to disclose to the board of Teta on 24 April 2003 that the mandate with Fidentia Asset Management had already been signed two weeks earlier. 

Bothma also failed to disclose to the board that the promissory notes had already been sent to Maddock Inc on the same day that the Fidentia mandate was signed or that he had instructed Fidentia Asset Management to sell one of the promissory notes before the maturity date.

He received bribes of R1.9-million and R4.2-million from Steven Goodwin and J Arthur Brown, respectively, in return for ensuring that the Teta funds were invested with Fidentia Asset Management. “The corrupt relationship between Goodwin, Brown and the accused ensured that Fidentia Asset Management had access to liquid funds to purchase the buildings in Century City, luxury cars for directors of the company - Rudi Bam, Maddock, Brown, and others - and purchase the beachfront property Brown lived in. Bothma laundered the monies he received through the accounts of various individuals and entities to disguise the true nature of the fund, whilst he knew that the funds were the proceeds of unlawful activities,” said Eric Ntabazalila, regional communications manager for the NPA in the Western Cape.

Having already successfully evaded a sentence for 17 years, Bothma’s lawyers filed an application for leave to appeal the conviction and the sentence, which was successfully opposed. DM