Council employees in R10m corruption scam

2012-05-17 14:14

The city of Johannesburg has uncovered a R10 million scam involving council employees.

One worker had already been suspended as a result of the investigation, the city said in a statement today.

More suspensions were expected. Staff in the development planning and urban management department had apparently taken application fees from city customers and generated fraudulent receipts.

While city records reflected the applications as valid, with payment received, the money had in fact, been illegally diverted. The city’s forensic unit was helping law enforcement in its investigations.

The department’s processing systems had been changed.

“Ratepayers and customers need to be assured that this incident will not affect the processing of their applications, unless current investigations determine that the applicant is part of the scam.”

Investigators had been asked to verify whether the fraud could have contributed to the city’s billing woes.

“Members of the public are also urged to come forward to make statements to the commercial police branch should they know anything about this scam.”

In a separate matter, two employees, a senior bylaw public prosecutor and a metro police officer, had been arrested for soliciting bribes, the council said.

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