Former property valuer on R500m fraud charge

Herman Mashaba is the executive mayor of the City of Johannesburg. File photo

Herman Mashaba is the executive mayor of the City of Johannesburg. File photo

Published Jan 18, 2017

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In a huge breakthrough in the fight against corruption in the City of Joburg, yet another scam has been uncovered.

A former candidate valuer, Mbali Mcclare, was arrested on Wednesday. A deputy director has also been suspended pending swift disciplinary processes.

The two stand accused of deliberately undervaluing 22 properties in the city amounting to just under R500 million. The fraudulent adjustments and changes of the market values of these properties by invalid municipal objection outcome letters resulted in the loss of an estimated R40 million worth of revenue for Joburg over five financial years.

This follows an investigation conducted by the city’s internal forensic investigations unit, headed by General Shadrack Sibiya.

Maclare is expected to appear in the Specialised Commercial Crimes Court on Monday, January 23 on charges of fraud and corruption.

City mayor Herman Mashaba said further arrests on this matter are imminent.

“This money should have been used to provide basic and much-needed services such as water, electricity and refuse removal to the poor and most vulnerable residents of our city.

“Disgracefully, this forensic report, like so many others, had been swept under the carpet by the previous administration and kept from the public eye. The first I knew of it was when Carte Blanche brought it to my attention. Despite this report being hidden from me, I am pleased to state that the new administration immediately took action,” he said.

The mayor said the city would also be going after private companies and individuals who worked with these officials “to erode the integrity of the city and steal from our residents”.

These individuals in the private sector will also face the full might of the law and will have to pay back the money.

Corruption will not be tolerated, said Mashaba.

“The people of Joburg have voted for change that brings an end to corruption, creates jobs and delivers better services, and we will not allow self-serving city officials, residents and private companies to continue to benefit themselves at the expense of all other residents,” he said.

Mashaba congratulated Sibiya and his team and acknowledged the role and support of the SAPS and the Prosecuting Authority in this case.

@annacox

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