Monday, May 17, 2010

Cape Town's R67m World Cup tender fraud

Alleged fraud linked to 2010 World Cup tenders amounting to tens of millions of rands is behind the arrest on Friday of municipal officials in Stellenbosch, a senior official revealed on Sunday. And more officials are to be arrested soon as the investigation by the elite Hawks unit is widened to include more Boland municipalities.

The five former officials, who include an ex-mayor and an ex-deputy mayor, are to make their first court appearance in Stellenbosch on Monday. The Cape Times has also learnt that one of the accused has turned state witness and will provide the state with vital information. The group was held by the Hawks in Khayamnandi on Friday, after a seven-month investigation. Stellenbosch mayor Cyril Jooste said the arrests were linked to the Special Investigations Unit (SIU) investigation into a number of municipalities across the province. The men, aged between 36 and 58, previously held positions in the Stellenbosch Municipality. "There is an SIU investigation that is still ongoing. The arrests are linked to that investigation. I can also confirm that a previous executive mayor and ex-deputy as well as three other officials were arrested by the Hawks," said Jooste.

It is understood that the arrests are linked to nine sites that are being erected as viewing parks. "We do expect more arrests. It (the tender) is about R67 million. We are busy working very hard with the SIU and the police. We even gave them a room in the municipality building to work from," said Jooste.

Local Government MEC Anton Bredell welcomed the arrests, saying it was sad that community leaders had been arrested for fraud. On Sunday Bredell told the Cape Times that more people would be brought to book at the other municipalities under investigation. These included Theewaterskloof, Witzenberg, Bitou, Stellenbosch and Oudtshoorn. Bredell said his department was committed to bringing back discipline to councils throughout the province and to stamping out corruption. He said his office had initially asked the Hawks to investigate the municipality.

Police spokesman Colonel Billy Jones said the Hawks launched the investigation in October when the allegations were initially reported to the police. "Details of the alleged modus operandi and the investigation will only be revealed when presented as evidence in court," he said.

The embattled municipality is also busy dealing with nine ANC councillors who were hauled before a full council two weeks ago to face expulsion because they had allegedly breached the code of conduct for councillors. The councillors failed to attend three consecutive council meetings. The councillors' absence from meetings had delayed the passing of the municipality's budget.The council recommended that the nine councillors be expelled. "That's a totally different issue," said Bredell. "All I can say is I will treat them fairly. I will be getting independent legal opinion on the matter."

The ANC has 17 of 37 seats while the DA and other smaller parties make up the rest in a council which has had three mayors in as many years. Alleged corruption in World Cup related tenders is not confined to Stellenbosch. In Nelspruit, Mbombela Municipality speaker Jimmy Mohlala Mohlala was shot dead outside his home in KaNyamazane last year, a week before he was due to testify in the disciplinary hearing of former municipal manager Jacob Dladla, who had been accused of financial mismanagement of the World Cup stadium project.

Source: IoL

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