The Hawks’ Serious Commercial Crime Investigation Unit in Welkom has arrested two suspects, aged 42 and 57, in connection with a fraud case involving irregular municipal expenditure.
According to reports, in August 2019, the former Accounting Officer of the Bultfontein municipality appointed a service provider to deliver debt collection services without adhering to the municipality’s prescribed supply chain procedures. Consequently, a payment of approximately R530,190.80 was made to the service provider’s bank account.
The irregularity was flagged by the Auditor-General South Africa (AGSA), whose report was later presented to municipal councillors. The report found that the municipality had incurred irregular and wasteful expenditure in both the appointment and payment of the service provider. It further alleged that the service provider had submitted fraudulent documents and invoices and had failed to deliver the contracted services. As a result, the municipality suffered a financial loss equivalent to the full amount paid.
The matter was formally registered and referred to the Hawks’ Serious Commercial Crime Investigation Unit for further inquiry.
The two suspects, along with the implicated company, have been charged with fraud, contravention of the Municipal Finance Management Act, and contravention of the Debt Collectors Act. They are scheduled to appear before the Bultfontein Magistrates’ Court on 28 May 2025.
