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Thursday, August 11, 2022

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Maluti A Phofung municipal manager arrested after R58m fraud

Published Aug 1, 2022


Two suspects including the municipal manager of Maluti A Phofung local municipality, in the Free State, appeared at the Phuthaditjhaba Magistrate’s Court on Monday for allegedly defrauding the municipality of R58m.

The duo, aged between 29 and 55, are both facing charges of fraud, corruption, uttering, forgery and Contravention of the Public Finance Management Act.

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The incident allegedly took place in 2020 when an estimated amount of R58 million was paid to the security service provider irregularly for a period of two years.

The tender, that was authorised by the municipal manager, was not advertised despite multiple letters that were sent by the chief financial officer (CFO), advising him to do so.

Free State South African Police Service Captain Christopher Singo further revealed that it was the municipal manager’s failure to advertise the tender that resulted in the matter being reported to the Hawks Serious Corruption Investigation team, based in Bethlehem, for further investigation.

“Investigations led to the point where the duo handed themselves over to the Hawks’ Investigating officers on Sunday afternoon,” said Captain Singo.