Former municipal employees sentenced for fraud and money laundering
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The Specialised Commercial Crimes Court sitting in Middleburg has handed down a sentencing for two former Dr Pixley Ka Isaka Seme Local Municipality for fraud and money laundering.
The duo Mxolisi Evidence Hadebe and Luthando Mpangeva aged 46 and 38 respectively got themselves under the radar of the Hawks in Mpumalanga after the Municipality found that they were colluding with a supposed service provider, Evoke Trading Pty (LTD).
“It was reported that on 9 June 2020, information was received from the former Chief Financial Officer of Dr Pixley Ka Isaka Seme Local Municipality regarding alleged misconduct between the Evoke Trading (Pty) Ltd and officials employed by the same municipality.”
“Evoke Trading (Pty) Ltd was appointed as service providers by the municipality. It was later discovered that the company was paid without delivering any service or work done. Mr Mxolisi Hadebe confirmed that the work was done, while Luthando Mpangeva, the project manager, ensured that fraudulent invoices were created and paid. Consequently, the municipality suffered the actual loss of R 127 974.25.”
They were both found guilty on six counts on October 21st, 2024 and were remanded in police custody pending sentencing in November. They were found guilty on (05) counts of fraud and (01) money laundering charge.
They were sentenced to two (02) years imprisonment on each count in terms of section 280(2) of Criminal Procedure Act 51 of 1977.
The court ordered that the sentence imposed should run concurrently.
