Cape Town - Tend fraud allegations rocked the City as police raided Mayco member for housing Malusi Booi and a cop’s offices on Wednesday afternoon in connection with an alleged R700 million mega-fraud probe.
As a result of what City mayor Geordin Hill-Lewis described as “potentially serious” and relating to alleged fraud and corruption, he immediately suspended Booi on Thursday.
According to well-placed sources in the investigation, police barged into Booi’s office and that of a cop, where they searched and seized information relating to alleged tender fraud.
Eight suspects linked to the case were arrested late last year.
Booi couldn’t be reached through WhatsApp and phone calls yesterday.
Crime-fighter Hanief Loonat, who filed a case against The Construction Co (TCC) for alleged irregular or fraudulent transactions worth millions of rand involving the City, confirmed that the raid pertained to that case.
Asked to confirm whether a cop’s office was raided, he said: “I’d rather be silent on that as it’s a sensitive matter.”
Loonat charged that the alleged fraud robbed the poor of critical service delivery as funds meant for the upgrading of ailing infrastructure on the Cape Flats were siphoned, with building material prices inflated tenfold. He alleged that City officials approved illegal payments.
Loonat said the raids are a precursor to an expected “20 or more arrests”.
In response to this publication, TCC said: “Any questions about the raid at the offices of the City, need to be addressed to the City.”
The Cape Argus queried SAPS on whether raids had taken place at the office of the police officer and that of Booi’s. We’ve withheld the police station’s location as the investigation continues.
Police spokesperson André Traut said: “Kindly be advised that what you are enquiring about is part of an investigation into fraud and corruption which saw detectives attached to the Commercial Crime Investigation Unit execute a search warrant at an office at the civic centre, Cape Town, on Wednesday afternoon, where electronic equipment and documents were confiscated.
“Details of this seizure and investigation cannot be divulged at this premature stage.”
Pressed to confirm or deny the raid on the cops’ office, police spokesperson FC van Wyk asked for the particulars of the raid, such as a case number, which wasn’t readily available.
The raid was followed by DA and Cape Coloured Congress (CCC) statements.
Booi’s suspension came after the police search and seizure operation “at City offices”, including Booi’s, Hill-Lewis said in a statement.
He said police informed him yesterday morning that the investigation was at an early stage, but “is potentially serious and relates to alleged fraud and corruption, and that further details cannot be disclosed at this time”.
Hill-Lewis said the City had given the SAPS probe its full backing.
“The City has a zero-tolerance approach to fraud and corruption and will not hesitate to act in the interests of good governance,” he said.
Mayco member for economic growth James Vos replaces Booi on an interim basis, Hill-Lewis announced.
Hill-Lewis didn’t respond to queries, including whether the tender fraud is pegged at R700m or R349m, and whether he had any word to whistle-blowers in the case.
CCC secretary-general Sakeena Frenchman said the raid vindicates the party as they had “waged a lone and relentless war” against the DA-led council in relation to the alleged fraud.
Earlier, DA provincial leader Tertuis Simmers said the “details are scarce and sketchy” and he was holding back from releasing a comprehensive statement until the facts were straightened.
“For the moment I confirm that the Western Cape government ... unreservedly condemn any and all irregular and illegal influences upon the execution of good governance. The impact of criminality on governance is endemic in South Africa which the Western Cape and DA governments everywhere have managed to curtail, if not eradicate.
“Any indication that criminality may have forced itself on any aspect of governance in the Western Cape will be aggressively investigated and will be met with the full force of both the law and DA good governance discipline,” Simmers said.
He promised investigation updates as he receives them “in the hours and days to come”, and vowed “criminality won’t derail good governance” and the provision of houses.
Frenchman urged the mayor to release an internal report into the alleged fraud, which was believed to have led SAPS to the raid.