Cape Town - The Makhanda High Court has granted the NPA’s Asset Forfeiture Unit a R165m restraining order against former Amathole District Municipality (ADM) officials and others, who are implicated in a R631m sanitation project fraud case.
The restraining order granted effectively freezes all the assets of the accused. The assets include houses and cars belonging to all the accused.
The officials, directors of businesses and their businesses were charged with fraud, corruption, money laundering, assisting another to benefit from proceeds of unlawful activities and contravention of the Municipal Finance Management Act (MFMA) on May 16, 2023.
The accused are:
– Former municipal manager Ntsokolo Chris Magwangqana, 64,
– Former CFO Nkosinathi Rooseveld Soga, 62,
– Former engineering head Mpumelelo Vincent Shezi, 45,
– Former corporate services director Lulama Taleni, 45,
– Former acting CEO of Cogta’s Municipal Infrastructure Support Agency Ongama Mahlawe, 55,
– Fomer Misa executive manager Goodman Ntandazo Vimba, 46,
– Businessman Bongani Mpeluza, 50, - the sole director of Siyenza Group
– Siyenza’s Eastern Cape director Eddison Vuyani Gaga, 37,
– Siyenza CFO Hellen Busisiwe Kwinana-Boadi, 54, and
– Siyenza operations head Lovemore Khativhu, 41.
All the accused have been released on bail.
“It is alleged that in 2013, Amathole District Municipality embarked on a project Accelerated Sanitation Programme where 66 700 ventilated improved pit (VIP) toilets in various villages within the Amathole District Municipality were to be erected,” Hawks spokesperson Captain Yolisa Mgolodela said.
Mgolodela further said that an amount of R631m was allocated for the project and Siyenza Group was appointed to execute.
“After the payment of the first trench, National Treasury lodged a complaint that the company Siyenza Group submitted two false tax certificates prior to the awarding of the tender.
“Investigations ensued and the money to the value of more than R149m was traced to a number of beneficiaries’ accounts besides the R16m house which was bought by the director of Siyenza Group using the funds acquired for the project.
“The money and the house were confiscated and the provisional restraint order was granted December 2, 2019, after their arrest November 22, 2019, followed by the confirmation of permanence on May 16, 2023.
Mgolodela added that the matter is currently on the Makhanda High Court roll was remanded to September 20, 2023, as some of the accused lodged representations to the National Director of Public Prosecutions.
Meanwhile, the provincial head Major General Mboiki Obed Ngwenya has commended the NPA and Special Investigation Unit Task Team of Anti Corruption, East London Priority Crime Specialised Investigation for the sterling job.
IOL