Three in court after R200m fraud

Published Aug 25, 2010

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A government official and two former officials appeared in the Pietermaritzburg Magistrate's Court on Wednesday after raids over fraud and corruption allegedly involving R200 million.

They were former KwaZulu-Natal head of the health department Dr Busi Nyembezi, KwaZulu-Natal legislature chief financial officer Sipho Buthelezi and a former procurement officer for the department of health, Mdu Ntshangase.

Justice and Constitutional Development Minister Jeff Radebe said in Pietermaritzburg on Wednesday that five businessmen and three government officials were arrested in the raids in Cape Town, Durban and Pietermaritzburg following an investigation which started in 2008.

"Today's arrests and seizure of assets must send a message as clear as a bell, to every doubting Thomas that there indeed is a political will on our part to combat corruption," he said.

The Asset Forfeiture Unit seized assets to the estimated value of R200 million in the raids.

These reportedly included the five-star Steenberg hotel in Constantia, the Shamwari Lodge in the Eastern Cape and the City Royal hotel in Pietermaritzburg, although this could not be confirmed.

Also seized were a private jet, a Maserati, a Range Rover, a Ferrari and an S Class Mercedes-Benz, according to Radebe.

He said the investigation which led to the arrests started after accusations of procurement irregularities allegedly involving government departments in KwaZulu-Natal and Northern Cape, and the company Intaka Holdings (Pty) Ltd.

Earlier on Wednesday, Hawks spokesman Musa Zondi said the main suspect was a "private sector person" who was in custody in Cape Town.

Zondi said five people would appear in court in Bellville, Cape Town, later on Wednesday. - Sapa

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