A former municipal employee has been sentenced to five years behind bars after being convicted of fraud and money laundering linked to the disappearance of more than
R1.4-million meant for the Compensation Fund.
Thabo Mosupa, 45, a former employee of Thabo Mofutsanyana Local Municipality in the Free State, was sentenced in the Bethlehem Commercial Crimes Court after being found guilty of multiple counts of fraud and money laundering after R1.4m payment intended for the Compensation for Occupational Injuries and Diseases Act (COIDA) ended up in the wrong bank account.
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Free State Hawks spokesperson Warrant Officer Fikiswa Matoti said: “The matter originates from 2017, when Thabo Mofutsanyana Local Municipality made a payment of more than
R1.4-million to the Compensation for Occupational Injuries and Diseases Act (COIDA). The payment was initially made into a Nedbank account but was subsequently returned to the municipality after the account was found to be invalid.”
Matoti added that the municipality thereafter transferred the funds to an FNB account, which was believed to belong to COIDA.
“It was later discovered that the account did not belong to COIDA, as the department of Employment and Labour confirmed that the compensation payment had not been received. The department further provided the municipality with the correct banking details, which were for an ABSA account. Following the discovery, the municipality launched an internal investigation to establish what had transpired,” she said.
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Department raises the alarm
Officials provided the municipality with the correct banking details for an Absa account, prompting the local authority to launch an internal investigation into how more than
R1.4-million earmarked for COIDA had ended up in an unrelated bank account.
Matoti added that a criminal case was subsequently opened against Mosupa and referred to the Hawks’ Serious Commercial Crime Investigation in Bethlehem for further investigation, which revealed that the FNB account into which the more than R1.4-million was transferred was linked to Mosupa’s company, The Seven One Stop.
The investigation resulted in the arrest of Mosupa, who made several court appearances before the Bethlehem Commercial Crimes Court until his conviction.
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Hawks investigators followed the money trail and uncovered a link between the FNB account and The Seven One Stop.
The discovery placed the former municipal employee at the centre of the investigation into the missing funds.
Hawks follow the money
The investigation culminated in his conviction on fraud and money laundering charges.
The court sentenced Mosupa to an effective five years’ direct imprisonment for his role in the offences, and his company was also held accountable.
The Seven One Stop was slapped with a R700 000 fine, which was wholly suspended for five years.
The suspension is subject to the condition that the company is not convicted of fraud or theft committed during the five-year period.
The Hawks said the conviction and sentences demonstrate their continued efforts to pursue officials and private entities suspected of defrauding public institutions and laundering the proceeds of crime.
- Thabo Mosupa, a former employee of Thabo Mofutsanyana Local Municipality in the Free State, was sentenced to five years in prison for fraud and money laundering related to the disappearance of over R1.4-million meant for the Compensation Fund (COIDA).
- In 2017, the municipality paid more than R1.4-million to COIDA, initially into an invalid Nedbank account, then into an FNB account believed to belong to COIDA but which was linked to Mosupa's company, The Seven One Stop.
- The Department of Employment and Labour confirmed that the funds had not been received and provided the correct ABSA account details, leading the municipality to launch an internal investigation.
- The Hawks’ Serious Commercial Crime Investigation uncovered the link between the FNB account and Mosupa’s company, resulting in his arrest and eventual conviction.
- Mosupa’s company, The Seven One Stop, was fined R700,000, a fine suspended for five years on condition of no further fraud or theft convictions during that period.
