Ex-municipal CFO must pay up for fraud

THE FORMER chief financial officer of Karoo Hoogland Municipality, Marius Botha, and bogus company owner Ockert Tobias Cloete were yesterday ordered to pay the Asset Forfeiture Unit for unduly benefiting from the proceeds of crime.

The accused were in May found guilty in the Williston Regional Court on nine charges of fraud, corruption and money laundering and contravening the Municipal Finance Management Act.

The former municipal manager at Karoo Hoogland Municipality, Louis Nothnagel, was found guilty of contravening the Municipal Finance Management Act, for failing to prevent corruption.

Hawks spokesperson, Captain Philani Nkwalase, stated that sentencing procedures would begin today.

“Botha and Cloete appeared before the Williston Regional Court on Monday (yesterday). The Asset Forfeiture Unit ordered Botha to repay R100 000, while Cloete was ordered to repay R50 000 to recover the proceeds of crime.”

The charges relate to undue payments that were made to a bogus company that was appointed by the municipality to install 600 solar geysers for the community in Williston.

Nkwalase stated that the Hawks investigation revealed that the prescribed procurement processes were not followed.

“Consequently, a bogus company received undue payments for delivery and installation of 600 solar geysers (100L low pressure) to the community in Williston before any services were rendered.”

The transactions were made between July 2011 and April 2012, where R217 152.52 was paid to the unregistered company in four separate transactions.

Nkwalase advised civil servant managers to put measures in place to prevent corruption.

“Furthermore, managers should report cases of corruption, big or small. Failure to do so constitutes an accessory to the same crime.”