R2,4 million fraud at Mogalakwena to be probed

Mogalakwena Municipality has appointed forensic investigators to probe two payments to a total amount of R2 416 544, 69 that were made to incorrect recipients on 24 January.
Spokesperson for the municipality, Malesela Selokela said in a media release that the municipality’s finance department made payments to various suppliers and on the following day, two of the suppliers complained that they had not received their payments.
“Upon investigation, it was discovered that during the payment process, the banking details of the two suppliers were changed and diverted to unintended recipients,” Selokela stated.
According to Selokela, the fraud was immediately reported to the two banks involved and they were requested to place the two accounts on hold in order to secure the municipal funds while investigations proceeded. One of the banks was reluctant to place a hold on the funds and insisted that the municipality obtain a court order to that effect. A firm of attorneys has been appointed on an urgent basis to approach the court for an order to that effect.
Selokela confirmed that a fraud case was opened at the Mokopane Police Station on 25 January.
The Democratic Alliance (DA) Limpopo requested Mogalakwena Mayor, Andrina Matsemela to immediately suspend the Chief Financial Officer, Charles Malema and acting Municipal Manager, Kenneth Maluleka, pending the investigation. The DA further insisted that Matsemela should ensure that Malema and Maluleka pay the costs of the forensic investigation.

Story: BARRY VILJOEN
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