MunicipalNews

Three suspended after R7.5 million fraud allegations

JOBURG – Misrepresenting projects and procurement lead to the suspension of three Joburg Market officials.

Another three City of Johannesburg officials have been suspended after R7.5 million in theft, fraud and corruption was uncovered by the City’s anti-corruption unit.

Previous investigations by the unit, headed by Shadrack Sibiya have revealed corruption at various departments. This time, the Joburg Market, frequented by an estimated 11 000 buyers on a daily basis, is in the spotlight. The three officials had allegedly misrepresented the amounts of goods received through the market’s procurement process, Mayor Herman Mashaba said.

“Officials also fraudulently misrepresented the completeness of services rendered by some suppliers, causing substantial financial loss to the market. One such case of misrepresentation cost residents [over R1 million],” he claimed.

Mashaba also said that in another instance, the market overpaid more than R5 million to a supplier who had business interests with market employees.

The City has opened a case of fraud, theft and corruption against all implicated officials and suppliers with the Directorate for Priority Crime Investigation, and Mashaba said the arrest of all those implicated is imminent.

Officials named in the report will also face the City’s internal disciplinary proceedings and have already been suspended, pending the outcome of all investigations.

MMC for Finance recently paid a visit to the market, which he said has an important role to play in stimulating local economic growth, attracting business and ensuring food security. The Joburg Market’s acting chief executive officer, Joe Mazibuko said about 40 per cent of all fresh produce destined for the National Fresh Produce Markets in the country is sold at the Joburg Market.

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