Heads roll in Jozi Market fraud stink

City of Joburg suspends three officials after R7.5m fraud is uncovered at the market.

The City of Johannesburg has suspended three officials for fraud while arrests by the Hawks are pending.

This comes after the city’s anti-corruption unit uncovered fraud at the Johannesburg Market implicating staff and suppliers and amounting to more than R7,5 million.

The Hawks’s Crime Investigation Unit has registered a criminal case against all officials and service providers implicated in the investigation.

The details of the investigation are contained in a report submitted by the unit’s head, General Shadrack Sibiya, to Johannesburg’s mayor, Herman Mashaba.

Sibiya’s unit initiated the probes after a whistle-blower came forward. Part of the investigation is a sequel to the auditor-general’s findings that identified transgressions by officials or other role players that needed investigation.

Sibiya’s report gave the details of theft, fraud and corruption amounting up to R7 535 686.43 that was taking place at the fresh produce market between September 2014 and February 2016.

The shocking graft report revealed how three municipal officials collaborated with three suppliers, allegedly to defraud the city of money. The market, which is situated on Heidelberg Road, in City Deep, southeast of Johannesburg, serves about 5 000 farmers throughout South Africa.

Mashaba said yesterday that the market officials misrepresented the amount of various goods supplied via the market’s procurement processes, resulting in overpayment of R1,8 million.

The tender involved contracts to supply steel rocker bins, portable water and hand-wash basins, and transformers. Mashaba said the metro has moved to suspend the officials pending the outcome of all the investigations.

In another case, the unit found that the market had overpaid R5 million to a supplier with whom employees of the market had business interests.

“The city has opened a case of fraud, theft and corruption against all implicated officials and suppliers with the Hawks,” Mashaba said.

“The arrests of all those implicated are imminent. Officials named in the report will also face the city’s internal disciplinary proceedings,” the mayor said.

He commended the work done by most of the city’s servants saying that the few perpetrators of corruption “diminished all our combined efforts to deliver”.