Self-proclaimed businessman Brown Mogotsi has alleged that Crime Intelligence funds were used to purchase a luxury property valued at R22.7 million—a house he currently occupies—in testimony before Parliament’s ad hoc committee investigating police corruption .
Property Registered in Private Individual’s Name
Mogotsi told the committee that the property was registered in the name of a young woman who is not a police employee, describing this as a serious red flag indicating abuse of state resources . He revealed that Lieutenant-General Dumisani Khumalo, head of Crime Intelligence, was questioned about the property but that he has proof contradicting Khumalo’s response.
“There is a case where an informant was killed. Now, when people speak about the R100m spent on properties, I want to say this: I am sitting in one of those properties, valued at R22.7m,” Mogotsi said .
Context of Property Scandal
The R22.7 million property in question is reportedly a boutique hotel in Pretoria purchased by Crime Intelligence using secret funds, sparking widespread outrage when it came to light . Former IPID head Robert McBride previously testified that Crime Intelligence’s multi-million-rand slush fund has “always been abused” to control politicians and generals, and that such funds should not be used to buy buildings .
McBride noted that if an agent gets “blown,” the state cannot simply sell an entire building, highlighting the operational risks of such property acquisitions .
The Crime Intelligence division has been under scrutiny for multiple irregular property purchases without proper approvals, including the Veroz Boutique Hotel in Pretoria North valued at R43.4 million and Kyalami Lodge in Midrand valued at R48.25 million . These acquisitions allegedly lacked Treasury or Public Works oversight .
Allegations of Unqualified Appointments
Mogotsi further alleged that Khumalo allowed appointments of non-qualified officials to top positions without advertising the posts . He cited an example involving a brigadier appointment, questioning how someone could be brought from outside to head Crime Intelligence when there were more than 25,000 police officers available.
“Out of more than 25,000 police officers, you cannot appoint someone from outside to suddenly head Crime Intelligence as a brigadier,” he said .
Classified Intelligence and Investigation Challenges
Mogotsi stated that the information about the property transactions was part of classified intelligence he gathered while working as a contact agent and had been submitted internally. However, when presented to the evidence leader, it was deemed classified and could not be presented in an open forum.
“We are sitting here because corruption has happened. But when the information proving it is classified, we are then placed in a position where we are grilled and told there is no evidence, even though the property exists,” Mogotsi said .
Broader Context of Intelligence Fund Abuse
The allegations come amid ongoing investigations into the management of Crime Intelligence’s secret services account. DA MP Dianne Kohler-Barnard told the same committee that attempts to impose oversight on the fund had revealed procurement irregularities, and officers who questioned its handling were subsequently removed from their positions .
The Inspector-General of Intelligence reportedly investigated unlawful property acquisitions by the unit, with Major-General Philani Lushaba, the chief financial officer of Crime Intelligence, facing questions about his involvement in financial misconduct linked to the property scandal . The unit allegedly spent more than R45 million on irregular property purchases without proper approvals .
Mogotsi’s Intelligence Credentials
During the hearing, Mogotsi was questioned about his credentials as a Crime Intelligence asset. He maintained that he was an informant and agent, registered and later deregistered on the Crime Intelligence system, and claimed that attempts to discredit him were part of a fabrication by senior officials .
Committee member Julius Malema pressed Mogotsi on his background, asking what qualified him as an entrepreneur and informant. Mogotsi responded that he sold alcohol and meat on a small scale and had been involved in intelligence since becoming an agent in 2009 .
The parliamentary committee continues its investigation into allegations of police corruption and abuse of state resources.
