DR GASTON SAVOI PLEADS GUILTY TO FRAUD AND CORRUPTION AND AGREES TO COOPERATE WITH THE STATE
In the Pietermaritzburg High Court today, Uruguayan businessman Dr. Gaston Savoi (71) pleaded guilty to four counts of fraud and six counts of corruption that were committed in the Northern Cape (NC) and KwaZulu-Natal (KZN) between the period of 2004 and 2007. The matter was concluded by way of plea and sentence agreement in terms of Section 105A of the Criminal Procedure Act.
Dr Savoi was sentenced to a fine of R5 million- or 10-years imprisonment and a further 10 years imprisonment which has been suspended for five years. Importantly, the court also made a confiscation order for R60 million in favour of the state. The court further ordered that he pays a sum of R15 million as a contribution to the costs arising from the curatorship in the Asset Forfeiture Restraint Application proceedings.
This plea and sentence agreement was used by the NPA to bring an end to this drawn-out matter which has been delayed due to numerous interlocutory applications by the accused over the years. The NPA considered many factors as part of its strategic case management approach, the most important being the accused agreeing to cooperate and assist the State in its further proceedings against other government officials.
It also took into account the time lapse in concluding this matter and the fact that several key witnesses have since retired from their posts within the respective departments. The plea and sentence agreement was supervised by the presiding Judge.
The charges relate to the provision of water purification units (Watakas) and self-generating oxygen units (Oxyntakas) which were provided by Intaka Holdings (a company owned by Savoi) at inflated prices to the Department of Health in Northern Cape and the Department of Local Government, Housing and Traditional Affairs in KZN. This cost the government over R100 million.
In 2022, following a separation of trials, Savoi’s co-accused Dumisani Sipho Derrick Shabalala was convicted of fraud, corruption, money laundering and contravention of the Public Finance Management Act (PFMA) to the tune of over R1 million. He was sentenced to an effective 15 years imprisonment.
The NPA believes that this guilty plea agreement is the most effective way of bringing this longstanding and serious matter to conclusion. The sentences handed down are appropriate and the accused’s agreement to cooperate with the State will enhance further efforts to ensure accountability for related criminal acts linked to this case.
