SA water crisis: Northern Cape municipalities paid R900k to just one fake service provider

While cash-strapped local governments need billions to battle leaks, and citizens often have days without water in their taps, a Northern Cape district municipality and a local municipality under its jurisdiction paid a bogus water service provider a combined R925,000.

33-year-old Simangele Sangweni submitted a fraudulent change of banking details letter and invoices to Phokwane Municipality in August 2021, pretending to be an official from Vaalharts Water, a service provider of the municipality.

Phokwane Municipality is a local municipality within the Frances Baard District Municipality.

Sangweni, through her company Multi Quipments (Pty) Ltd, misrepresented themselves and misled the municipality into paying an amount of R455 510 into her business account.

A month later, she submitted another fraudulent change of banking details letter and invoices to the Frances Baart District Municipality, purporting to be Municipal service provider Sedibeng Water.

The municipality then paid R469 918 to Multi Quipments (Pty) Ltd.

Fake water official jailed

The Kimberley Specialised Commercial Court this week sentenced Sangweni to 10 years direct imprisonment for fraud, forgery, and money laundering. Multi Quipments (Pty) Ltd was sentenced to pay a fine of R100 000, wholly suspended.

The Directorate for Priority Crime Investigation’s Northern Cape Head, Major General Steven Mabuel, applauded the sentencing.

“Criminality in any form must be confronted; this conviction sends the right message,” Mabuel said.

Sabotage

President Cyril Ramaphosa recently acknowledged that mafias are rampant, alleging that critical water infrastructure is being sabotaged.

“There are people who make it their business to go and cut water lines, to create businesses for themselves so that they can cut water in trucks and tanks to our people,” he said.

He outlined how four unnamed prominent businesspeople had allegedly developed a lucrative trucking business model and employed “henchmen” to damage infrastructure.

ALSO READ: Ramaphosa warns of scheme by water mafia

A costly crisis

Minister of Water and Sanitation Pemmy Majodina this week confirmed that the country needs at least R90 billion annually over ten years to fix its ageing water and sanitation systems.

Her department is working with other departments, such as Cooperative Governance and Traditional Affairs (Cogta) and Human Settlements, to combine their grant funding for greater impact. It is also looking for private sector investment and partnerships to avoid a collapse of water services.

Additional reporting by Enkosi Selane

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