Top cop Feroz Khan’s hand in Treasury R50m tender after link to R280m contract

Police crime intelligence operation support boss Maj-Gen Feroz Khan did not only receive “kickbacks” in a R280m National Treasury contract, but also had a hand in a tender worth more than R50m for automotive spare parts, according to evidence before the Madlanga commission.

Evidence from Khan’s WhatsApp chats with entrepreneur Ismail Vally ventilated at the commission on Monday showed the duo influenced the lucrative three-year tender to supply automotive spare parts for the police.

The awarding of the tender was facilitated by the National Treasury and documents show the contract awarded to Vally’s company Kaizen Motor Spares Distributors was for more than R50m.

The evidence before the commission raises questions on whether contracts worth millions facilitated by the Treasury do not face risks of corruption.

The chats show Khan in 2021 sent Vally a draft document of the automotive spare parts tender. Vally and Khan discussed how they needed the tender and that Khan should “talk to your guy”, Lt-Gen Molefe Fani, who at the time worked at the National Treasury as chief director dealing with contracts.

“We need another source of income bro,” Vally wrote in June 2021 to Khan talking about the tender.

Evidence leader Adila Hassim said from the discussions it was clear that Khan assisted Vally to get the contract with a promise that he (Khan) would financially benefit.

She said this was apparent from a text Vally sent to Khan in which he said “Inshallah [God willing] we get the SAPS deal,” adding “then we stash that money, you and I. Don’t put back into the system.”

Hassim said the texts revealed while Khan, who has automotive businesses, did not apply for the tenders intended for his employer, he benefited through his associates.

“The indication is that this is not merely a contract that would benefit one party, being Mr Vally, but it would benefit General Khan as well. The point is that this was a joint project between the two,” Hassim said.

She said the chats, before the commission investigating criminal infiltration in law enforcement agencies, showed Khan used his position to access tender documents and shared such with his associates and through Fani influenced the tender process for his preferred bidders to win.

In March 2022, the National Treasury awarded the tender to All Parts and Vally’s company Kaizen Motor Spares Distributors.

Hassim said the commission’s investigations found Khan owned several automotive spare parts businesses but did not fully disclose his business interest with his employer.

She said he constantly disclosed to have received R3m remuneration from one business. The remuneration is three times higher than his salary from the state, which is about R1.3m a year.

She said the police documents also show Khan, for years, disclosed he owned a Uno vehicle. This, however, changed in the 2024/25 financial year when he disclosed he owned 30 vehicles.

Details of a R3.3m private jet flight for former Ekurhuleni city manager Imogen Mashazi, her husband and two friends were also found on Khan’s phone.

Documents show the private trip in 2022 was paid for by businessman Ze Nxumalo.

The Sunday Times, however, has reported the financing of the flight was linked back to an Ekurhuleni metro contractor.

Hassim said there were lingering questions about the expensive flight and why tobacco company executive Mohamed Sayed shared the information with him.

“It is clear that is no ordinary private trip. While there may be no question that Nxumalo paid for this trip, there has been some question whether it was ultimately funded by somebody else, we do not know that yet.

“On the face of it, the conferral for a benefit to the tune of R3.3m is extravagant, and it raises obvious concerns for us of a conflict of interest and of possible corruption, gratification and abuse of public office. That is the first point,” Hassim said.

She said if this trip was not declared to Ekurhuleni council then the failure to disclose would be a matter of great concern.

“It would mean a senior municipal officer accepted or was associated with a private benefit of extraordinary value without transparency to the public institution she served in. The commission would want to consider who benefited from this trip beyond Mashazi and her husband and her friends.”