Two in dock for R40m public works lease scam

Johannesburg - A businessman and a former public works department senior official accused of money laundering and corruption are expected to appear in the Johannesburg Magistrate's Court on Wednesday.

Businessman Sayed Hoosen Mia and former senior administrator Desmond Simamane would appear for a trial date to be set.

The two were allegedly involved in a lease scam involving R40 million.

The scam led to the department paying R40 million for the lease of six Johannesburg buildings from Mia. Despite the money being paid, the buildings were never used.

Simamane allegedly accepted bribes from Mia in exchange for recommending his companies for lease contracts for office space for other national government departments.

He allegedly accepted a Nissan Hardbody bakkie, worth R156 400, and use of a BMW 525, worth R566 250, from Mia. He also allegedly received payments of R640 500 via his football club's bank account.

Simamane was granted R5 000 bail and Mia R10 000 bail. - Sapa