Eastern Cape high ranking officials arrested over R20 million fraud
Eight high-ranking officials affiliated to the former Eastern Cape Premier’s office, Phomollo Masualle are expected to appear before the Zwelitsha Magistrate’s Court on Tuesday on charges of R20 million tender fraud.
According to the Directorate for Priority Crimes Investigations (HAWKS) Spokesperson Yolisa Mgolodela, the suspects, aged between 43 and 71, were arrested following a joint operation.
The suspects, who include company directors, were arrested in Gauteng on Monday for fraud, forgery, utterance, money laundering, and contravention of the Public Finance Management Act (PFMA).
Mgolodela alleged that in January 2016, the Department of Education requested the Eastern Cape Office of the Premier (OTP) to assist in the emergency procurement of 72 temporary classrooms and furniture to be deployed in the Gqeberha and Uitenhage areas.
“A company was appointed for the tender worth more than R20 million, without following improper procurement processes during the appointment of the company.
“It was alleged that the preferred service provider was closely linked to the senior Office of the Premier officials and that delivery of the said classrooms was not completed within the province, but funds allocated accordingly were exhausted.”
The suspects were arrested in the early hours of the morning in Gauteng province.
“The eight are in transit to the Eastern Cape, where they will make their first court appearance in the Zwelitsha Magistrate’s Court on Tuesday,” said Mgolodela.
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