Two in court over R9 million street infrastructure fraud in the Eastern Cape
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Durban – Two people accused of defrauding the Mnquma Local Municipality in the Eastern Cape in a multimillion rand project have been released on bail.
Malik Yusuf Addae, 69, and Meliwe Magwiro, 39, appeared in the Butterworth Magistrate’s Court on Tuesday morning.
Directorate for Priority Crime Investigation (Hawks) spokesperson Lwando Zenzile said the project was for construction of internal streets at Mnquma Local Municipality to the value of R 9.1 million during August 2013.
“The investigation revealed that the values on invoices had been inflated.”
Five people have been charged with fraud.
On August 28, three out of the five suspects appeared in the same court.
However, Addae, who is a consultant in the company, and Magwiro who owns the construction company, could not be held in custody as at the time they were being quarantined for Covid-19.
Zenzile said they were each granted R10 000 bail and the matter was adjourned to November 2.
The Mnquma local municipality invited bidders for the preliminary designs of the Ngqamakwe town internal street surfacing in August 2013.
HMP Africa and CWZ Matoti & Associates were appointed as consulting engineers for the project, while Soyama Construction and Luqaqambo Civil Construction were appointed for the street surfacing.
The Hawks said it was found the workmanship was poor and the payment certificates signed by municipal officials, who formed joint ventures. Services, however, were not rendered.
Upon investigation, the Hawks found more than R9.1 million was lost by the municipality.