Middelburg municipal officials convicted for fraud and money laundering

Two officials at Pixley Ka Seme District Municipality have been convicted of fraud and money laundering after their activities cost the municipality R150 000.

The Middelburg Specialised Commercial Crimes Court on Wednesday convicted the former project manager of the municipality, Luthando Mpangeva, and the former administration clerk at its supply chain management, Mxolisi Evidence Hadebe.

The pair was charged along with Sibusiso Blessing Simelane, the sole director of Evoke Trading (Pty) Ltd., who pleaded guilty to the crime, and the trial was separated.

Evidence of fraud

It is alleged that in 2018, the trio colluded in facilitating and submitting fraudulent invoices from Evoke Trading to the municipality without any services rendered.

As a result, the municipality suffered a loss of over R150 000.

Mpangeva and Hadebe were both convicted on five counts of fraud and money laundering in terms of Section 4(1)(a)(ii) of the Prevention and Combating of Corrupt Activities Act 12 of 2004.

The case has been postponed to 24 and 25 October for a pre-sentence report and sentencing.

National Prosecuting Authority (NPA) regional spokesperson, Monica Nyuswa, said cases like this show the state is “committed to fighting financial crimes and protecting the economy of the country”.

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Free State asbestos fraud leaves government low on funds

While the Free State Department of Human Settlements is still on a mission to remove asbestos roofs in the province, they need money.

At the same time, a court case into a failed R255 million asbestos roofing project is ongoing.

The case involves former Free State premier Ace Magashule’s former personal assistant, Moroadi Cholota, facing charges of fraud, corruption, money laundering, and violating the Public Finance Management Act.

She was linked to the tender awarded by the Free State Department of Human Settlements to Edwin Sodi’s Blackhead Consulting to audit, assess, and remove asbestos from homes in the province.

The department’s MEC, Saki Mokoena, said even now, their commitment to the project underscores the importance it has placed on the health and safety of Free State residents.

Delivering his departmental budget vote speech on Friday, Mokoena said they had identified approximately 36 000 asbestos-roofed units across the province that require urgent attention.

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Additional reporting by Tshehla Cornelius Koteli and Faizel Patel.