East London businessman busted for multimillion-rand fraud

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Published May 19, 2023

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Cape Town - The Hawks have arrested an East London businessman who is accused of submitting a fraudulent building certificate in a Buffalo City Metropolitan Municipality tender worth more than R7.3 million.

Businessman Nyaniso Sandisiwe Silinga, 39, was arrested on allegations of fraud, forgery and uttering on Thursday.

According to the Hawks, Silinga submitted a fraudulent building certificate as the sole director of Coalition Trading CC, with the National Builders Registration Council later confirming that the company was not registered with them.

Hawks spokesperson Captain Yolisa Mgolodela said that on May 15, 2020, Coalition Trading, represented by Silinga, is alleged to have submitted a bid for the Buffalo City Metropolitan Municipality tender to supply and deliver 115 mobile prefabricated structures with light steel frames amounting to more than R7.3m for the homeless and destitute in the metro during the Covid-19 pandemic.

“On June 3, 2020, the Buffalo City Municipality is reported to have appointed Coalition Trading 1203 CC as the preferred service provider ... and Coalition Trading accepted the offer.”

Mgolodela said that, responding to a tip-off from a whistle-blower, the Special Investigation Unit (SIU) conducted a probe and identified irregularities, which led to the case being investigated extensively by the Hawks.

“Investigations revealed that Silinga, as the director and on behalf of Coalition Trading CC, submitted a fraudulent and building certificate, as it was later confirmed by the National Builders Registration Council that the company was not registered with them,” Mgolodela said.

Mgolodela said that the Buffalo City Municipality was nearly prejudiced of more than R7.3m due to the fraudulent and forged document, depriving the would-be rightful beneficiaries from partaking in the bid – which explained the charge of uttering.

“After his arrest on Thursday, Silinga made his first court appearance in the East London Magistrate’s Court the very same day and was released on a warning

“The matter was remanded to May 31, 2023, for transfer to the regional court,” Mgolodela added.

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