Senior officials embroiled in R4.6m Free State municipality fraud
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Two senior executives from Maluti-A-Phofung local Municipality in the Free State have been arrested for fraud and corruption totaling R4.6-million.
The Hawks arrested the Municipality’s Chief Financial Officer, Nrateng Khumalo and the Expenditure Manager Diakanyo Khampepe on Thursday. They appeared in court of Friday where they were granted R10 000 and R1000 bail respectively.
“The two ladies were ordered by the Phuthaditjaba Magistrate Court not to interfere with the witnesses and surrender their passports to the investigating team,” Hangwani Mulaudzi said
“Their arrest is a sequel to a Hawks investigation into a security services tender that was allegedly unduly awarded to Zero Tolerance,” he added
Allegations are that in October 2016, the accused conspired and colluded then awarded Zero Tolerance a tender to provide protection and security services to the municipality.
This they allegedly did without following the correct Supply Chain Management processes in terms of Municipal Finance Management Act.
“The municipality reportedly lost almost R4.6m as a result of the alleged irregular, wasteful and fruitless expenditure,” he said
“Five suspects amongst them four senior officers from the Maluti a Phofung Local Municipality, a company director and Configen trading as Zero Tolerance -an entity - were arrested in December last year by the Hawks’ Serious Corruption Investigation,” he added
The suspects, Nrateng Khumalo, Boikanyo Khampepe, Mokoena Robert Tsupa, Abraham Moratwe Mofokeng, Mabidikwana Willfred Matjele, Nkgaudise Nelson Molefe, Tefo Warnic Montsitsi and the company director were expected to appear at the Bethlehem Regional Court on April 4.