SIU confiscates luxury vehicles relating to R21.8 million tender fraud

The Special Investigating Unit (SIU) has welcomed a confiscation order which relates to the City of Ekurhuleni (the city) tender fraud and corruption amounting to R21.8 million. 

The Specialised Commercial Crime Court sitting in Pretoria handed down the order on 18 February 2022.

The confiscation order follows the seizure of properties and luxury vehicles by the Asset Forfeiture Unit in April 2012, which emanated from the SIU investigation in Ekurhuleni. 

The SIU investigation revealed that the winning bidder of a tender to supply and maintain computer components together with bid adjudicators failed to disclose a conflict of interest.

The R21.8 million tender bid was awarded in April 2008 to a company called Meropa Sechabeng Technology CC, which had barely been in existence for 10 months. 

The sole member of Meropa was Velero David, who declared during the bidding process that he had no relationships with anyone in the state or who may be involved in the evaluation and adjudication of the bid. 

But it turns out that David was related, through marriage, to the executive director of the Information Technology (IT) Department and an influential person in the awarding of the tender, Nilesh Singh.

Singh also arranged that interior decorating services be awarded to Meropa. Shortly thereafter, Singh resigned and joined Meropa.

The SIU investigation also revealed that Andrew Mphushomadi, a senior manager within the IT Department and member of Nanga Transport CC, was involved in the allocation of the tender. 

It emerged during the investigation that, shortly after the tender was awarded, Nanga purchased a number of Mercedes Benz trucks close to R4 million paid for by Meropa from the money received from the city. 

Meropa also splashed out around R8 million cash from the city tender on 16 luxury vehicles. 

The Pretoria Specialised Commercial Crime Court had found David, Singh, Mphushomadi and the 2 entities guilty on a number of counts including fraud, corruption and money laundering. Sentencing of the accused will take place on 18 March 2022.

Compiled by Narissa Subramoney

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