5 arrested for fraud

2008-04-26 07:47

Johannesburg - An anti-fraud operation led to the arrest of five people and R1m worth of assets being seized in Mamelodi, the National Prosecuting Authority said on Friday.

Spokesperson Tlali Tlali said the arrests on Thursday follow an investigation of multiple fraudulent transactions in the accounting and payment systems of the South African Social Security Agency (SASSA).

"These included fictitious procurement transactions in excess of R2.5m between December 2006 and March 2007," he said.

The Asset Forfeiture Unit, the Directorate of Special Operations (Scorpions) and the Special Investigating Unit were involved in the multi-agency operation.

The operation resulted in assets, estimated at over R1m, including immovable property, vehicles, expensive wearing apparel and jewellery being seized in Mamelodi.

One of the five arrested and whose assets were seized was a former SASSA employee, Tlali said.

A member of staff, whose duties included authorising purchase order payments and sundry payments, was also being investigated.

Six fraudulent transactions and payments had been created as sundry payments.

The fraudulent transactions were supposedly payments for construction, building maintenance and related services. The employee allegedly received more than R255 000 which was sent as payment for the building services rendered.

All persons arrested would appear before the Specialised Commercial Crimes Court soon.

Law enforcement agencies would pursue government employees who sought to divert state resources, meant to better the lives of ordinary South Africans, for their own personal interests, Tlali said.

- SAPA