14 suspects including bank employee arrested for R157m fraud

The Hawks have arrested fourteen suspects, including a former Nedbank employee on allegations of fraud and money laundering valued at more than R150 million.

The suspects aged between 25 and 47 years were arrested on Tuesday morning in Pretoria, Johannesburg and Krugersdorp by the Gauteng Serious Commercial Crime Investigation of the Directorate for Priority Crime Investigation.

 Hawks spokesperson Colonel Katlego Mogale said investigations are continuing.

“It is reported that the main suspect unlawfully made payments from suspense accounts valued at over R157 million which were further transferred to recipients who were not entitled to receive such monies.

“The recipients involved are 23 including 15 individuals, seven entities and six banks,” Mogale said.

Mogale added that the suspects are expected to make their first appearance in the Specialised Commercial Crimes Court sitting in the Palm Ridge Magistrate’s Court on Wednesday.

ALSO READ: Former Eskom employee convicted for fraud and corruption

Eskom fraud

Earlier this month, a former Eskom safety risk officer was found guilty of corruption and fraud totalling R58 000.

Thandi Ruth Magagula appeared in the Middelburg Specialised Commercial Crimes Court where the judgement was handed down.

The 41-year-old pleaded guilty to seven counts of corruption and two counts of fraud, leading to her conviction under Section 17(1) of the Prevention and Combating of Corrupt Activities Act 12 of 2004.

National Prosecuting Authority (NPA) regional spokesperson Monica Nyuswa said the former Eskom employee’s offences stem from contracts awarded to a company named Mantoza Engineering Projects CC in 2015.

Sentence

Magagula served as a director of Mantoza Engineering Projects while still employed at Eskom.

“Magagula failed to disclose her financial interest in the company to Eskom’s management and continued to conduct business with the public entity while holding a directorship position.

“This behaviour violated laws governing public officials and Eskom’s conflict of interest policies. During plea proceedings, Magagula was convicted in line with her admissions of guilt, confirming her role in the corrupt activities,” Nyuswa said.

Magagula was last week sentenced to a fine of R50,000 or two years imprisonment on seven counts of corruption – contravention of the Prevention and Combating of Corrupt Activities Act (PRECCA).

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