Firm ‘at the heart’ of dodgy City deal raided
AN investigation by the Hawks into allegations of possible fraud within the City’s housing directorate took a further step last week when police raided the premises of the construction company alleged to be at the centre of corruption claims.
Anti-crime activist Hanif Loonat lodged the fraud complaint against The Construction Co (TCC) in October last year. Loonat said: “I opened a case against TCC for alleged irregular or fraudulent transactions with the City after I received information regarding the alleged irregular or fraudulent expenditure during the lockdown in March last year.”
The information Loonat received was that “various budgets were allegedly being approved for ill-gotten gains with excessive costs”.
Loonat said: “I must applaud the Western Cape Commercial Crimes Unit, under the leadership of Kalie Laurence, for their tireless work in collating various important facts and information that have led to a search and seizure of pertinent information from the company on Thursday.”
He said: “The Municipal Finance Management Act dictates that the City can’t engage with a party or person where there is a prima facie case of fraud.
“I hope after the search and seizure that the Commercial Crime Unit is able to provide a factual report to the City, which they will be obliged to act upon,” said Loonat.
Loonat said he appreciated that Mayor Dan Plato had requested the City’s internal special investigating unit to assist with the investigation, but claimed the City’s probe had not co-operated fully with the police probe.
Loonat said: “I fail to understand how the City’s forensic unit could promise to provide a report since October 2020, but that report has still not been provided.
“The police were forced to obtain a search and seizure order against the company to obtain additional corroborative information to finalise the case regarding the alleged fraud committed.” Responding to queries from the Argus, City spokesperson Luthando Tyhalibongo said: “The issue has been reported to the city manager for his attention. This matter is also with the Hawks for investigation.”
Police spokesperson Colonel Andrè Traut said: “This office can confirm that members of our Commercial Crimes Unit executed a search warrant at a business premises in Maitland on Thursday in connection with a fraud case reported to police during October last year.”
Traut said: “The investigation is still under way and the finer aspects thereof cannot be disclosed at this stage. The identities of the parties concerned can also not be disclosed.”
Company director Asif Khan said the company was co-operating with police, but would not make any further comment.