Company boss bust for fraud by the Hawks
A LOCAL company director is set to appear in court on fraud charges after being awarded a R10.8 million contract by the Department of Public Works for maintenance work in Parliament.
Hawks spokesperson Lieutenant-Colonel Philani Nkwalase said the 44-year-old company director was arrested by the Hawks Serious Commercial Crime Unit this week for fraud worth over R519 000.
“The suspect was served with the court summons to appear at the Specialised Commercial Crimes Court in Bellville. It is alleged that the company and its sole director submitted fraudulent documents to the Department of Public Works (DPW) purporting that they have paid a substantial amount to their subcontractor contracted to render a service to the state,” said Nkwalase.
Nkwalase said the Hawks investigated the matter after the accused’s company was awarded a R10.8 million tender by the department to render maintenance work in Parliament in October 2010.
“Subsequently, another company was given a partial subcontract worth approximately R519 000. The department was compelled by the Cape Town High Court on October 26, 2015, to amend the total cost amount and make the additional payment of R455 296 so as to enable the company awarded the tender to pay the subcontracted company.
“The payment of R519 000 was made by the DPW on November 19, 2015, as ordered by the high court. However, the subcontracted company alleged that they never received any payment during the initial contract even after the high court decision. The department reported the matter to the Hawks, who after investigation realised an element of misrepresentation,” said Nkwalase.
According to the charge sheet, the Parow Valley business owner had lied in a founding affidavit that he advanced a payment to a subcontracting business for materials kept offsite. The matter is set to be heard on October 5.
Meanwhile, a former employee at the George Provincial Hospital, Jacob Claassen, has been convicted of R4.4m fraud and tender corruption in the George Regional Court. A Hawks investigation revealed that between February and December 2011, Claassen, 63, a supply chain manager, colluded with two co-accused who allegedly registered various companies on their and family members’ names to manipulate the tender processes in order to benefit their group of companies.
Hawks spokesperson Zinzi Hani said: “Claassen pleaded guilty on all 83 charges of fraud and corruption following a diligent investigation by the Hawks. The court sentenced Claassen to 10 years imprisonment for 82 charges of fraud, which is suspended for five years with unyielding conditions.”