The Special Investigating Unit (SIU) welcomes the confiscation order related to the City of Ekurhuleni tender fraud and corruption, amounting to R21.8-million.
The Specialised Commercial Crime Court handed down the confiscation order in Pretoria on February 18.
According to SIU spokesperson Kaizer Kganyago, the order, which emanated from the SIU investigation in the City, follows a seizure of properties and luxury vehicles by the Asset Forfeiture Unit in 2012.
The SIU investigation revealed that the winning bidder of a tender for the supply and maintenance of computer components together with bid adjudicators failed to disclose a conflict of interest, contrary to the City’s bid policies, which provided a strict list of measurements to combat abuse like fraud, corruption and favouritism.
“The R21 806 331 tender bid was awarded in April 2008 to a company called Meropa Sechabeng Technology CC, which had barely existed for 10 months.
“The sole member of Meropa was Velero David, who declared during the bidding process that he had no relationships with persons in the service of the State or who may be involved in the evaluation and adjudication of the bid.
“However, unbeknown to the City of Ekurhuleni at the time, David was related through marriage to Nilesh Singh, the executive director of the IT department and an influential person in the awarding of the tender.
“Singh also arranged for interior decorating services for Meropa and he resigned and joined Meropa shortly after the bid was awarded,” explained Kganyago.
The SIU investigation further revealed that Andrew Mphushomadi, a senior manager within the IT department and member of Nanga Transport CC, was also involved in the tender’s allocation.
“It emerged during the investigation that, shortly after the tender was awarded, Nanga purchased several Mercedes-Benz trucks close to R4-m paid for by Meropa from the money received from the City. Meropa also splashed out around R8-m cash from the City tender on 16 luxury vehicles. Had the City been aware of the true state of affairs, it would not have awarded the tender contract to Meropa.”
The Pretoria Specialised Commercial Crime Court had found David, Singh and Mphushomadi, and the two entities guilty on several counts, including fraud, corruption and money laundering. The sentencing of the accused will take place on March 18.
“The SIU was, in terms of Proclamation R63 of 2010, directed to investigate allegations of corruption, maladministration, malpractice and payments made by the City of Ekurhuleni together with the conducts of the City employees.
“The outcome of the Specialised Commercial Crime Court is a continuation of the implementation of the SIU investigation’s outcomes and consequence management to recover financial losses suffered by state institutions, and hold those responsible to account for the actions through a justice process in accordance with the SIU Act 74 of 1996,” said Kganyago.
Fraud and corruption allegations may be reported via the following platforms:
siu@hotline.co.za / Hotline: 0800 037 774.
Also Read: SIU says Ekurhuleni tuk-tuks contract probe at advanced stage
Also Read: Play your role in preventing and exposing corruption: SIU
