Shu Wei Lu, 35, of Goodwood was not asked to plead to fraud charges when she appeared in the Bellville Specialised Commercial Crime Court before magistrate Sabrina Sonnenberg.
According to the charge sheet, tenders that exceeded R500,000 were considered according to factors including the number of historically disadvantaged individuals (HDIs) in the tendering company’s ownership structure.
The company Est Gyms CC is the second accused.
Prosecutor Tracy Belelie alleges Lu fraudulently gave a coloured woman a fictitious 90 percent interest in the company, to be awarded tenders as an HDI-compliant company.
At the time, the coloured woman worked in the social development department. She was not required to participate in the running of Lu’s business but, for agreeing to be falsely registered as having a 90 percent interest, received quarterly amounts of R12,000.
Consequently, the company was allegedly awarded a tender worth R49,982,433.
The State alleges Lu had a legal duty to disclose that the woman worked for the government at the time of submission of the tender bid, but fraudulently failed to do so.
Lu’s failure to disclose caused unfair losses to other legitimate tenderers, and rendered the tender process irregular, the State alleges.
The alleged fraud happened between July 2008 and November 2010.
The case was postponed to April 20, to enable Belelie to find a Mandarin interpreter.