Hawks nab municipal boss for R12.5m fraud

2013-05-10 17:09

A director at the Alfred Nzo municipality in the Eastern Cape has been arrested for allegedly defrauding his employer of R12.5 million.

“He allegedly facilitated the awarding of a tender to install electricity in surrounding villages to a certain company ... the winning company, in turn, appointed the director’s own company as a sub-contractor for the project,” Hawks spokesperson Captain Paul Ramaloko said.

No electricity has been installed in the villages in and around the municipality, situated in Mbizana in the Eastern Cape, said Ramaloko.

The main contractor allegedly channelled over R12 million into the director’s company bank account.

“A six-month investigation has led to his arrest; more are expected to be arrested soon,” said Ramaloko.

The director is expected to appear in the Mbizana Magistrates’ Court on Monday to face charges of fraud and corruption.

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