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Hawks investigate R36 mln fraud at Alfred Nzo District Municipality

It's alleged senior municipal officials colluded with service providers and fashioned a criminal network.

Picture: @SAPoliceService/Twitter

CAPE TOWN - The Hawks are probing a case of fraud worth R36 million at the Alfred Nzo District Municipality.

The Serious Corruption Investigation team conducted a search and seizure operation at the municipality following allegations of fraud and corruption.

It's alleged senior municipal officials colluded with service providers and fashioned a criminal network.

"The criminal network allegedly created a duplicate tender contract that was already in place and procurement processes were disregarded. This tender worth R36 million was awarded to another service provider allegedly linked to the syndicate," explained Hawks spokesperson Philani Nkwalase.

Nkwalase said a sub-contracted company linked to a service provider then allegedly transferred money back to the municipal officials, in order to disguise the source and movement of funds.

"The municipality suffered a loss of undue payment over a period between 2014 and 2018. The purpose of the search was to secure documents linked to allegation of fraud and corruption and done in the interests of justice . No arrest were made at this stage pending the finalisation of the probe."

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