The National Prosecuting Authority (NPA) has withdrawn the fraud and corruption case against Crime Intelligence boss Lieutenant General Dumisani Khumalo and six senior police officials, following mounting questions about the Investigating Directorate Against Corruption’s handling of the investigation.

The decision, announced on Friday, comes as the Madlanga Commission continues to examine the circumstances surrounding the controversial case and the conduct of IDAC officials who investigated and prosecuted it.

The NPA said National Director of Public Prosecutions Advocate Andy Mothibi had invoked Section 179(5)(c) of the Constitution, read with Section 22(2)(b) of the National Prosecuting Authority Act, allowing him to intervene where policy directives have not been complied with.

The accused are Khumalo, Major General Philani Lushaba, Crime Intelligence’s chief financial officer; Major General Nosipho Precious Madondo, head of Intelligence Analysis and Co-ordination; Major General Josias Lekalakala, Gauteng provincial head of Crime Intelligence; Major General Zwelithini Gabela, responsible for Technical Management Services; Brigadier Phindile Ncube, head of Personnel Security and Vetting; and Brigadier Dineo Mokwele.

The case arose from allegations surrounding Mokwele’s appointment to a senior Crime Intelligence position.

The seven were arrested by IDAC in June 2025 and charged with fraud and corruption relating to the alleged irregular appointment of Mokwele to a brigadier-level post in Crime Intelligence’s Technical Support Services.

The NPA previously said the accused were alleged to have acted in common purpose and to have flouted vetting procedures, which are particularly important in Crime Intelligence because of the sensitive information handled by the division.

Khumalo and most of his co-accused were granted R10 000 bail, while Lushaba was granted R20 000 bail after initially remaining in custody because of a separate pending case. Their bail conditions included a prohibition on entering Crime Intelligence premises and interfering with state witnesses.

But the prosecution began coming under intense scrutiny when evidence relating to the case was placed before the Madlanga Commission.

In July, senior IDAC investigator Colonel Brian Padayachee defended the investigation, telling the commission that the case against Khumalo was supported by evidence. However, subsequent testimony raised questions about the foundation of the investigation and whether IDAC had the legal mandate to pursue it.

The commission heard that the case originated from a complaint by suspended MP and National Coloured Congress leader Fadiel Adams.

IDAC’s former head, Advocate Andrea Johnson, later acknowledged before the commission that she had made an error in determining that the matter fell within the directorate’s mandate.

She also conceded that IDAC had not verified Mokwele’s qualifications before proceeding with the investigation, according to reporting from Business Day and the Madlanga Commission’s official hearing record.

The commission also heard questions about the Section 27 referral that formed the basis of the investigation.

Media reported that Chairperson Justice Mbuyiseli Madlanga questioned whether the referral that led to Khumalo’s arrest met the legal requirements for IDAC to launch the investigation.

The matter became one of the most closely scrutinised cases during the commission’s examination of IDAC, with evidence touching on its mandate, the selection of targets and the conduct of investigators.

The NPA said Mothibi considered the evidence gathered by IDAC, representations made by the accused’s legal representatives and “undisputed evidence” presented during the commission’s IDAC stream.

The NPA stressed that the Madlanga Commission has not yet made findings on the evidence because it has not submitted its report to President Cyril Ramaphosa.

However, Mothibi concluded that the interests of justice and the integrity of IDAC and the NPA required intervention at this stage.

The decision also has consequences for IDAC itself.

The NPA said disciplinary processes had been initiated against three suspended IDAC officials who were implicated before the commission over alleged improper conduct relating to the case.

The authority did not name the officials in Friday’s statement.

It also announced plans to “reset” IDAC, including lifestyle audits, a skills and qualifications audit of all employees and measures to ensure personnel are appropriately placed and fit for purpose.

The reforms are intended to restore public confidence in the directorate and ensure it operates within the law.

The NPA said the process of appointing an acting Investigating Director was continuing.

The withdrawal represents a major setback for the prosecution of Khumalo and his co-accused, but it does not amount to a finding of innocence or guilt by the Madlanga Commission.

The commission is continuing with its work, while the NPA said its decision was taken to protect the integrity of the prosecution system and the interests of justice.

The case had become a key test of IDAC’s powers and methods. Its withdrawal now adds another significant chapter to the commission’s investigation into allegations of dysfunction, improper conduct and interference within South Africa’s criminal justice system.