‘Fallen angel’ to pay for crooked tenders

A Richards Bay businessman, described as a “fallen angel” who was tempted by greed, was slapped with a R500 000 fine and a wholly suspended five-year jail term on Thursday for submitting false information to win contracts worth R52 million. Commercial Crime Court acting magistrate Nalini Govender said she had been persuaded to be “merciful” with Ishwarlall Ramlutchman because of his extensive humanitarian work. Ramlutchman, who owns AC Industrials Sales and Services, admitted earlier this month to defrauding the provincial Department of Public Works by tendering for contracts using false documents. He was convicted of 21 counts of fraud and one count of corruption. Ramlutchman is known for his philanthropic acts and has erected Sivananda Peace Pillars, in honour of Swami Sivananda and the late Swami Sahajananda, across South Africa.

The 3.5m high, 4-ton granite pillars are inscribed with prayers from the world’s major religions. He was also among the few people who were invited to Nelson Mandela’s birthday celebration at Qunu last year. Govender sentenced Ramlutchman to pay R500 000 over three months or spend 10 years in prison. He was also given two five-year jail terms, which were both wholly suspended for five years. His company was awarded contracts worth R52m by the Department of Public Works for work on 14 schools and two hospitals between May 2006 and August 2008 because of false Construction Industry Development Board gradings. The gradings determine the scale and value of the contract companies may tender for from the government.

The false documents included financial statements, fake declarations about the hiring of qualified professionals and fraudulent documents about its track record for completed projects. An employee of the board, Minesh Pema, who Ramlutchman alleges was the “mastermind” behind the scam, was convicted of fraud and given a wholly suspended five-year jail term earlier this year. In aggravation of sentence, State advocate Kogie Moodley said Ramlutchman was a “man of means” and did not have to resort to crime. “His crime has put an indelible stain on his humanitarian deeds and society expects a suitable sentence. While he was doing ‘good’ with one hand, on the other hand he was involved in corruption.” Ramlutchman’s advocate, Jimmy Howse, said his client had not robbed anyone.

“He is a genuine fallen angel. He was drawn to this through a high degree of temptation.” The defence handed in a bundle of documents that included photographs of the completed projects and testimonials from school principals who said the work had been satisfactory. Govender said that the Construction Industry Development Board was being overwhelmed by similar offences and that the gradings were necessary so qualified people could be awarded work. She said Ramlutchman’s saving grace was that he had completed the projects and his work had been of a “superior quality”. She also said that before and after the offences, Ramlutchman had been involved in extensive charity work which went across “race and gender” throughout KwaZulu-Natal.

Some of the work included donating computers to schools and being involved in food and toy distribution drives. Ramlutchman’s assets were restrained by the Asset Forfeiture Unit as a result of his guilty plea. The matter has been set down for argument next month as Ramlutchman has argued that his assets should not be confiscated because no actual funds were defrauded.