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It is alleged that senior municipal officials colluded with service providers and created a criminal network.
CAPE TOWN – The Hawks are investigating a fraud case worth R36 million in the Alfred Nzo district township.
The Serious Corruption Investigation team carried out a search and seizure operation in the municipality after allegations of fraud and corruption.
Senior municipal officials are alleged to have colluded with service providers and created a criminal network.
“The criminal network allegedly created a duplicate bidding contract that was already in force and the procurement processes were ignored. This bid for R36 million was awarded to another service provider allegedly linked to the union,” explained the spokeswoman for the Hawks, Philani Nkwalase.
Nkwalase said an outsourced company tied to a service provider allegedly transferred money to city officials to disguise the source and movement of the funds.
“The municipality suffered a loss of undue payment during a period between 2014 and 2018. The objective of the search was to obtain documents related to the allegation of fraud and corruption and carried out in the interest of justice. No arrests were made at this stage in waiting for probe completion “.
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