Hawks seize documents for alleged R26m fraud in Eastern Cape municipality

The Hawks in Eastern London, Eastern Cape, have seized documents for the alleged R26-million fraud at Nxuba Yethemba municipality in Cradock.

Hawks spokesperson, Lieutenant Colonel Philani Nkwalase said a search and seizure operation was conducted at the municipality on Tuesday.

“The purpose of the operation was to secure documents that were linked to the allegations of fraud and corruption valued at approximately R26 million.

“The investigation stems from the alleged flouting of procurement processes.

“Several companies were awarded tenders for road construction, maintenance projects and designing of a community hall.

“All these projects were allegedly paid in full to all service providers during the 2017/2018 financial year, yet the work on all projects was partially rendered.

“It indicates that the projects were allegedly used to siphon municipal funds,” Nkwalase said.

Nkwalase said a preliminary investigation has shown probable cause and a search warrant was granted.

He added that no arrests were made on Tuesday “as people of interest and implicated companies are yet to be charged, pending the on-going investigation”.

(Compiled by Makhosandile Zulu)

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