KZN Hawks officer Deena Govender told R300k transaction has ‘hallmarks of money laundering’
KwaZulu-Natal Hawks senior officer Lieutenant Colonel Deena Govender has struggled to explain why he would hand almost R300,000 in cash to an accountant and family friend, who would then arrange for a third party to transfer the money into his bank account.
Govender was testifying before the Madlanga Commission on Monday, where he was cross-examined about multiple cash deposits into his and his wife’s bank accounts between 2022 and 2023.
The transactions have come under scrutiny as they were made before Govender’s task team fatally wounded tow-truck driver and alleged gang member Bevan Loftus and four other men during a 2023 operation in Durban.
The Commission is probing whether Govender was acting on behalf of Loftus’s rival, tow-truck operator Clive Naicker, who was allegedly offering an incentive of more than R2 million.
The officer denied receiving payments from Naicker and has rejected allegations that police officials were receiving money from the tow-truck operator for protection or assistance from his task team.
During Monday’s proceedings, Evidence Leader Matthew Chaskalson questioned Govender about a specific transaction involving R298,462.
Chaskalson put it to Govender that he had given cash to Cassie Shamal, who would then arrange for one of his clients to make an electronic funds transfer into Govender’s account.
“So, you give cash to Mr. Shamal, and then one of Mr. Shamal's clients pays you, EFT, into the account,” Chaskalson said.
Govender confirmed that this had happened, although he stressed that it was not a regular practice.
Chaskalson then asked whether the transaction under scrutiny was therefore from one of a number of Shamal’s clients.
Govender explained that one of Shamal’s clients was also known to him and that the arrangement had only been used a few times.
“So, one of his clients is known to me as well. So, it wasn't often. It was, I think, about two transactions. That's it,” Govender said.
Chaskalson then focused on the specific transaction involving R298,462.
“Why would you do this process with Mr. Shamal, of taking R298,462 in cash to him and asking him to get one of his clients to pay you?” he asked.
Govender said he would have done so, but appeared uncertain about the exact amount.
“I would have done that. That's why I'm trying to see the reference. So, with bank charges, that's why it's coming to that figure,” he said.
Chaskalson suggested the amount may have been closer to R300,000.
“Maybe,” Govender replied.
The evidence leader continued to question why Govender would take such a large amount of cash to Shamal and then have a third party transfer the money into his account.
“So, are you saying to me and to the Commission that you took R298,462 in cash to Mr. Shamal and asked him to arrange for a third-party client of his to transfer that amount to you?” Chaskalson asked.
Govender said he would have done so.
“But the question remains, why would you take R300,000 in cash to your accountant, deposit it at your accountant, and ask your accountant to find some third-party who could do a bank transfer into your account?” Chaskalson asked.
Govender then corrected the description of Shamal’s role.
“So, he's not my accountant. He assisted me. He's family to me,” Govender said.
Chaskalson pointed out that he had been working under the assumption that Shamal was Govender’s accountant.
“Well, the record will speak for itself. I was certainly working under the assumption that we were talking about your accountant, except I may have misheard you,” Chaskalson said.
He then sought to clarify whether Shamal was an accountant who provided services to Govender as a favour.
Govender confirmed that Shamal had assisted him with a property matter.
“Yes, he assisted me with the property. I told him about the property,” he said.
But Chaskalson was not satisfied with the explanation and returned to the R300,000 transaction.
“But the question remains. Why would you take R300,000 in cash to your family friend, Mr. Cassie Shamal, who is an accountant but isn't your accountant, and ask him to keep the cash and arrange a bank transfer into your account?” he asked.
“Why wouldn't you just go to your bank and give them R300,000?” Chaskalson asked.
Govender said using Shamal was easier.
“It was much more easier for me to do that there,” he said.
Chaskalson then told Govender that, in his view, the transaction raised serious concerns.
“You see, Lieutenant Colonel Kanda, what it looks like to me is this is a transaction that has all the hallmarks of a money laundering transaction,” Chaskalson said.
Govender rejected the suggestion.
“Not really, Commissioner,” he responded.
The questioning comes after an Independent Police Investigative Directorate officer previously alerted the Commission to suspicious cash payments deposited into Govender’s accounts before the 2023 operation that resulted in the deaths of Loftus and four other men.
A prior phone call between Loftus and Naicker also pointed to allegations that Naicker had paid Govender.
Govender has denied receiving any payments from Naicker and said he would explain the cash deposits.
He has maintained that some of the money was from an FNB loan, while other cash payments were from family members and family friends.
The Commission is investigating the allegation.
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