The Hawks’ Serious Commercial Crime Investigation in Welkom have arrested two suspects aged between 42 and 57 for fraud.
Reports indicate that, during August 2019, the former Accounting Officer of the municipality in Bultfontein appointed a service provider to render debt collection services for the municipality without following proper municipality supply chain procedures. As a result a payment to the amount of about R530 190.80 was transferred to the service provider’s bank account.
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The matter came to the attention of the councillors after receiving a report from the Auditor General South Africa (AGSA) which revealed that the municipality made an irregular and wasteful expenditure on the appointment and payment of the service provider. The report further alleged that the service provider submitted fraudulent documents and invoices and he never rendered the services he was paid for. As a result the municipality was prejudiced and suffered a loss of about R530 190.80.
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A case was registered then referred to the Hawks Serious Commercial Crime Investigation in Welkom for further investigation. The duo together with the company were charged with fraud, contravention of the Finance Management Act and contravention of the Debt Collectors Act. They are expected to appear before Bultfontein Magistrates’ Court on 28 May 2025.
