Pretoria - At least three service providers have been nailed in a forensic report for attempting to swindle more than R10 million from the City of Tshwane for work they claim was done for the ANC.
The work included catering for the funeral of former national police commissioner Jackie Selebi and memorial services for the late minister Collins Chabane, as well as city ANC Tshwane councillor William Mahlangu.
The service providers were fingered in a damning forensic report for allegedly attempting to falsify invoices and use them to defraud the city.
The shocking revelation is in a report commissioned by the city after a probe into fraudulent activities related to invoices submitted to the Office of the Speaker.
The invoices were for work allegedly done in 2014, 2015 and 2016 under the ANC-led administration.
The investigation was the result of an audit into invoices submitted by the Office of the Chief Audit Executive, which unveiled transgressions of supply chain management policies.
In January, the City asked Fundudzi Forensics Services to probe allegations that some suppliers had submitted invoices for work not done.
The report was submitted during a council sitting on Thursday and discussed behind closed doors.
It uncovered a trend by some service providers to rake in millions from the city by cashing in on the funerals of ANC dignitaries.
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Forensic report uncovers millions siphoned by former administration through former
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— Solly Msimanga (@SollyMsimanga) July 27, 2017
A company called Dinyane Business Enterprise was found to have claimed a payment of more than R500000 from the city for catering at the Pretoria showgrounds and Waterkloof. This related to the funeral of Selebi. It was unclear who requested the service from Dinyane, the report said.
The same company submitted an invoice of R133836 for the memorial service of Chabane, the late public service and administration minister.
“We could not find any document that indicates that the council took a resolution to host this memorial service,” the report said.
Investigators detected something untoward with both claims and recommended that it should not be paid.
Another company, Mabena Group, which offered catering for the funeral of former Hammanskraal councillor, Mahlangu, was found to have inflated the price of two cows slaughtered for the mourners.
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Forensic report uncovers millions siphoned by former administration through former
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— Solly Msimanga (@SollyMsimanga) July 27, 2017
Investigators recommended that the price for the cows be reduced to R10000 each from R12000. Mahlangu was accorded a civic funeral on January 15, last year.
Mapeke General Trading was found to have highly inflated the costs for a marquee with a 1000 capacity by charging R84000 for two tents at Mahlangu’s funeral.
ANC deputy chairperson Mapiti Matsena was implicated in the report of having given the go-ahead of the catering of lunch and drinks for 250 people, who attended an ANC branch meeting at Nellmapius Secondary School.
The catering cost R52470 and it was recommended that the invoice should not be paid.
Other fraudulent activities unveiled by the investigators showed one service provider claimed R3000 per day for loud hailing, whereas another one claimed R6000 per day.
Some service providers claimed R22 per day for a chair whereas others would claim R10 per day, the report said.
Mayoral spokesperson, Samkelo Mgobozi, said the report detailed how the suppliers collectively claimed that a total of R28172203 was due to them.
Mgobozi said: “Based on the review of documentation provided to the investigators, as well as consultations with the service providers, it was established that of the of R28172203, only R11372255 could be verified. That amount will be paid to eligible service providers.”
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Forensic report uncovers millions siphoned by former administration through former
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— Solly Msimanga (@SollyMsimanga) July 27, 2017
He said some invoices proved to be for the erection of R114 000 tombstones for individuals who were in the Struggle in various political organisations.
The report recommended that a criminal case be registered with the SAPS to investigate fraud and possible corruption.
Matsena, who was then strategic executive head in the office of the Speaker, said: “In the context of the report there is nowhere it implicates me. It was just somebody who mentioned my name when that individual was interviewed.
“For example, one person said ‘I was instructed by Mapiti to do one, two three’. However, in the body of the report it says it didn’t get the side of Mapiti.”
Regarding claims made to the City for services rendered for the ANC, he said: “If you have provided a service for the ANC you can’t go to the City. You can see how desperate people were when they saw that we are no longer in charge. They went there to say this was an ANC event and we are bringing an invoice to the City.”
Matsena said he was not interviewed during the forensic investigation and “was surprised to see this report”.
On Wednesday, Matsena received a letter, which the Pretoria News has seen, from city manager Moeketsi Mosola.
Mosola informed Matsena that the report did not make any conclusion or findings against him and former speaker Morakane Mosupyoe-Letsholo as forensic investigators were yet to consult with both of them.