The City of Johannesburg collected R1 million from an industrial site owner who was in the process of claiming a R2,2 million fraudulent refund from the City.
According to the City of Johannesburg’s Executive Mayor, councillor Herman Mashaba, at the beginning of March 2018, the business owed the City a total amount of R5,1 million, but at the end of the same month the account reflected a credit of R2,2 million – and the businessman came forward to claim the fraudulent refund.
“I am informed that staff members working at the Revenue Department realised that something was wrong with the account and immediately intercepted the refund request.
An investigation was then conducted by the City’s Group Forensic and Investigation Service department. While the investigation was under way, the previous adjustment, which had credited the account and reduced the balance to a credit amount of R2,2 million was suddenly reversed, and the account went back to a R5,1 million debit balance, which is due and payable to the City,” said Mashaba.
Apparently the businessman was called in and made a payment of R1 million while the query on the account is being addressed prior to full settlement. Investigations into the account also revealed that the account had not been correctly billed since August last year. City officials are currently working out the correct amount owed. The businessman will then be given the corrected bill, which he is expected to settle.
The Operation Buya Mthetho team also visited the premises and found that the electricity meter had been bypassed.
Mashaba mentioned that the City could have lost over R7 million if the refund request had been honoured. He then thanked all the staff who worked hard to stop this corruption. Over 18 people linked to the fraudulent refunds scam in the Revenue Department have been arrested.
“I am deeply disappointed at learning that these corrupt activities are still continuing. I have instructed our anti-fraud and corruption unit to look into this matter. It is clear that consumers continue to collude with our officials in the fraudulent refunds scam. We have zero tolerance for corruption. That is why we will continue to vigorously pursue every allegation of corruption,” he added.
Do you perhaps have more information pertaining to this story? Email us at roodepoortrecord@caxton.co.za (remember to include your contact details) or phone us on 011 955 1130.
For free daily local news on the West Rand, also visit our sister newspaper websites
Remember to visit our Facebook, Twitter and Instagram pages to let your voice be heard!
