Durban: Four high-ranking Alfred Ndzo District Municipality officials and a businessman have been charged with fraud amounting to R38 million.
Provincial Hawks spokesperson Captain Yolisa Mgolodela said the four were expected to appear in the Mthatha Magistrate’s Court on Thursday.
They were arrested by the Hawks’ East London Serious Corruption Investigation team, for an incident dating from almost 10 years.
“During 2012, a certain company was allegedly awarded a R38 million… (contract) for the installation of water meter readings at Alfred Ndzo District Municipality which were already installed,” said Captain Mgolodela.
“The said company is further alleged to have subcontracted another company which is reported to have taken over the… (contract) and received the proceeds.”
She said further investigations revealed that the subcontracted company, was allegedly already paying considerable amounts to the bidding committee, during the bidding process.
In addition to charges of fraud, they also faces charges of contravention of the Municipal Finance Management Act.
IOL