Former MP among seven arrested for alleged corruption

Seven suspects, including high-ranking officials, company directors, and a former member of Parliament accused of corruption have handed themselves over to the Hawks’ Serious Commercial Crime Investigation Unit in Gauteng.

The suspects were arrested on Wednesday morning and are expected to appear at the Palm Ridge Specialised Commercial Crimes court after they’ve been processed.

Arrests

The suspects will be charged with fraud, theft, and contravention of the Public Finance Management Act (PFMA) and the Prevention of Organized Crime Act (POCA).

Their arrest follows a forensic report by the Specialised Investigating Unit (SIU) which discovered that in October 2016 the Gauteng Department of Agriculture and Rural Development issued a tender requesting proposals to integrate and formalise waste operatives and waste into the mainstream waste management economy.

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Tender fraud

A tender of around R27 million was then awarded to Enviro-Mobi in March 2017.

Hawks spokesperson Brigadier Thandi Mbambo said the contract between the Department and Enviro-Mobi stipulated that the department may consider paying on condition that 50% of the work has been completed and no upfront payments may be made to the service provider.

“During investigations, it was established that the Chief Director and Chief Financial Officer processed and paid over R25 million to Enviro-Mobi for 200 motorised three-wheelers, though all goods were still with the service provider,” Mbambo said.

“It was also discovered that the service provider later issued a letter of demand to the Department demanding a further payment of over R9 million for safekeeping, storage and ancillary services relating to the fleet.

MP

“Also the company failed to disclose in its bid proposal, its affiliation to the politician who was a member of Parliament (MP) and misrepresented to the Department that it had supplied the fleet  as well as fleet-related services,” said Mbambo

Mbambo added that a case was registered at the Johannesburg Central police station in October 2020, which prompted an investigation by the Hawks.

ALSO READ: Former MP among seven arrested for alleged corruption