Directors in court for R16m fraud

2012-01-14 07:19

Two directors of a construction company in Taung, North West, appeared in the Mmabatho Magistrates Court yesterday for allegedly defrauding the Taung municipality of R16.6 million.

“The 47-year-old man was released on R5 000 bail and his 42-year-old girlfriend on R1 000 bail. Their next court date is February 16,” Brigadier Thulani Ngubane said.

Miciel Marais and Janice Mendes were paid for building 731 houses in two different projects in the Taung municipality.

In the first project 360 houses were to be built in Ba Ga Phuduhucwana extension and they were paid more than R8.1 million. For the second project 371 houses needed to be built in Ba Ga Maldi and more than R8.5 million was paid to the company.

The department of human settlements initiated investigations with the Special Investigating Unit (SIU) after local residents held service delivery protests.

“The investigation by the SIU revealed that only one house was built, instead of 360 houses in Ba Ga Phuduhucwana extension,” said Ngubane.

“The municipality suffered a great financial loss. The Asset Forfeiture Unit obtained a restraining order for two houses with an estimated value of R5 million belonging to the company’s directors.”

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