SIU ensures conviction of City of Tshwane fraudster

2018-10-30 22:22


Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

A Special Investigating Unit (SIU) probe ensured that a former employee of the Tshwane municipality who flouted supply chain management regulations, causing the City a loss of more than R15m, will spend ten years behind bars.

Jacobus Barend Lerm, a former manager at the municipality, pleaded guilty to charges of fraud and corruption on Monday in the Pretoria Regional Court after a consultative process between the National Prosecuting Authority, SIU and the Hawks. 

"The Special Investigating Unit's dedicated member to the anti-corruption task team (ACTT) Mr Derick Homan – from the Pretoria office and seconded to the ACTT – did a sterling job with the investigation and evidence gathering and built up a solid case against two accused," Nazreen Pandor, head of communications and stakeholder management at the SIU, said.

"He (Lerm) was sentenced to an effective 15 years' imprisonment, of which 10 years was direct imprisonment while the remaining five years' imprisonment was suspended," said Pandor. 

The other accused, who cannot be named yet, is still to be convicted and sentenced, she said. 

Orders split to stay under the radar

A 2010 report by the City's standing committee on public accounts found that Lerm flouted the supply chain management policy by creating orders and procuring quotes for services from a supplier himself, instead of going through the procurement system.

He then split up orders into smaller amounts to stay under the radar of the R300 000 cap.

While the report does not detail who benefitted from these irregularities, it said that the City suffered a minimum loss of R15 181 430.

This report apparently gathered dust at the City, until Tshwane Mayor Solly Msimanga last year launched a full forensic investigation after getting his hands on the report, his spokesperson Sam Mgobozi told News24 at the time.

However, on October 31, 2010, former president Jacob Zuma signed a proclamation for the SIU to investigate serious maladministration at the municipality, which led to Monday's conviction.

Read more on:    pretoria  |  corruption

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

Inside News24

Traffic Alerts

Jobs in Cape Town [change area]

Jobs in Western Cape region

Audit Senior / Bookkeeper to Trial Balance

Cape Town Southern Suburbs
Placement Point (Pty) Ltd
R15 000.00 - R21 000.00 Per Month

Sales Representative- Knysna

George - Knysna
George Employment Consultants
R15 000.00 Per Month Per Month

Key Accounts - IT

Southern Shore Recruitment
R15 000.00 - R25 000.00 Per Month

Property [change area]

There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.