Suspects who defrauded gov of R 140million out on bail
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Photos: NPA
fraud case against 6 accomplices who defrauded the Mafikeng Local Municipality of a land which was said to be worth R 140 million has been postponed.
The said suspects aged between 66 and 34 years old Lekitlane Mutsi, Brian Moholo, Tshiamo Moholo, Johannes Petrus Van Der Merwe and Barbara Christiane Van Der Merwe, were added to the case that was before the court earlier this month of a 70 years old Henny Smit who was the Municipal Manager for the mentioned municipality at beginning of the alleged crime when it was committed in October 2007.
It is said that Smit illegally agreed with a company for the sale of land belonging to the municipality. The said company only paid R5 million as a deposit to purchase the land. Investigations by the officials revealed that the company went into liquidation in December 2011 without paying the municipality the outstanding debt.
This is according to Henry Mamothame of the NPA who also said that the assets of this company were subsequently sold to another company for an amount of R16 million at an auction.
“In April 2012, the new owners of the land changed their company name, and between 2013 and 2015 they sold and transferred portions of the land to five other companies and a trust account. Investigations by the Hawks revealed that directors and shareholders of these companies had links to the company that was liquidated and they acted in common interest in illegally making gains from the municipal land that was acquired irregularly.”
“It was further revealed that the company that bought the land from the auction entered into an unlawful agreement with the Social Housing Regulatory Authority (SHRA) to build 2400 units at the value of over R301 million. An amount of R54 million was allegedly authorised by the North West Department of Human Settlement for the start of the project. This contract however failed to materialise, as it was not budgeted for by SHRA.”
As if that was not enough, more investigations also revealed that an amount of over R550 000, was paid as gratification to Brian Moholo and it was further traced to a purchase of a house for his daughter, Bontle Moholo. This money was paid through a trust whose trustees are Johannes and Barbara Van Der Merwe.
They face multiple charges which include fraud, theft, Contravention of the Municipal Finance Management Act (MFMA), four of the Prevention and Combating of Corruption Activities Act (PRECCA), two of corruption, money laundering, Contravention of the Public Finance Management Act (PMFA) about the loss by the Human Settlement department. More arrests are expected to be effected in this case, and investigations are completed.
They were all released on a combined R 570 0000.00 bail by Molopo Magistrates Court and due back in court on December 8th, 2023.
