Two individuals, ages 42 and 57, have been taken into custody by the Hawks’ serious commercial crime investigation unit in Welkom on suspicion of fraud connected to an incident that occurred at the Bultfontein municipality in 2019.
One of them was the municipal accountant at the time.
The arrests come after an investigation that was initiated by a report from the Auditor General of South Africa (AGSA) that pointed out financial irregularities.
The Hawks said that the former accounting officer hired a debt collection service provider in August 2019 without following the correct supply chain protocols.
This resulted in the service provider receiving payment of about R530 190.80.
AGSA uncovered irregularities
According to the most recent AGSA report, the municipality suffered a financial loss as a result of the service provider’s submission of false invoices and documents and their failure to provide the services for which they were paid.
“The AGSA report was critical in uncovering this irregular and wasteful expenditure,” said Warrant Officer Fikiswa Matoti, the spokesperson for the Hawks in Welkom.
“It brought to light the discrepancies in the appointment process and the fraudulent nature of the documents submitted by the service provider.”
The case was turned over to the unit for a comprehensive investigation after it was registered.
Charges were brought against the two suspects and the company after the investigation found that the service provider’s actions violated several regulations.
The suspects face charges of fraud, contravention of the Finance Management Act, and contravention of the Debt Collectors Act.
“These charges reflect the seriousness of the misconduct and the impact it had on the municipality’s finances,” Matoti said.
The accused are scheduled to appear in the Bultfontein magistrate’s court soon.
Former Spar boss nailed
In a separate case in April, Sunday World revealed that a former bookkeeper and general manager of Spar in Gqeberha, Eastern Cape, had been arrested on suspicion of money laundering, theft, and fraud.
Between 2021 and 2023, the two are accused of planning and stealing R2.3-million in cash from the grocery store.
The Hawks made their arrest in the Eastern Cape.
