Kenny Kunene investigated for Fraud

The investigation emanates from Kunene's dealings with investors who claim to have been conned into supporting an application for mining rights by Central Rand Gold (CRG). Kunene was CRG's community liaison, and was instrumental in securing the rights.

For almost 10 days Sunday World, asking for updates on the 2012 investigation, has been shunted from pillar to post by the Hawks. No information was forthcoming.

But Sunday World established on Friday that an investigation is being coordinated from the office of Brigadier Lesley McFinn, of the Gauteng Hawks.

"It is there with 1 000 others," said a source close to the probe.

Yesterday Hawks spokesperson Paul Ramoloko said: "I can neither confirm nor deny that there is an investigation.

"In any case, it is not our policy to discuss cases that are not yet ready for court."

Last year our sister newspaper, the Sunday Times, reported that CRG had allegedly misled investors with lucrative tenders, share offers and directorships in an attempt to secure their backing.

The Sunday Times based its story on a forensic report and other company documents.

In March last year, then Hawks spokesman McIntosh Polela confirmed the investigation to the Mail and Guardian: "We have done an investigation.

"However, our protocol doesn't allow us to give updates on ongoing investigations."

CRG raised more than R1bn but spent it in three years - without producing any gold.

It was reported that community stakeholders who had been told that they would benefit from CRG's operations were incensed when they learned that Kunene and his prison friend and business partner, Gayton McKenzie, paid themselves salaries of R243000 and R150000 a month respectively, and a bonus of R4m for securing the mining rights.

Kunene and McKenzie convened public meetings in 2007 in Roodepoort, Bosmont, Riverlea and Fleurhof and the Soweto suburbs of Orlando East, Orlando West, Diepkloof and Meadowlands.

At these meetings residents were promised shares, jobs and business opportunities - but few benefited, the newspaper reported.

Phresh Ent | Staff Reporter | Twitter