Municipalities Defrauded Of Several Millions, Suspects Apprehended


South Africa’s Directorate for Priority Crime Investigation (Hawks) arrested two suspects for defrauding municipalities millions of rand.

The pair, male and female respectively aged 42 and 49, were arrested by Hawk’s Commercial unit.

BuzzSouthAfrica learnt from the South African Police Service that the arrest followed a lengthy internal SARS investigations.

The investigations revolve around unclaimed Input VAT claims by several Western Cape municipalities for the 2009 to 2011 period.

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As alleged, a tax consultant company directed by the suspects was contracted by Oudtshoorn, Venterdorp and Plettenberg Bay Municipalities to assist in recovering unclaimed Input Vat for these periods.

Relating that the entity was paid lucratively for each successful tax recovery made, SAPS stated that investigation laid bare the fact below.

“…The said entity was somehow allegedly inflating their VAT assessment figures as it stood to benefit directly. Claims were somehow allegedly repeatedly submitted, even on items already claimed in previous periods, or claimed on items which are prohibited by the VAT Act, resulting in the Receiver of Revenue suffering losses to the tune of approximately R16 million.”

SAPS further asserted that the “pair’s unlawful exploits were brought to a screeching halt by the probe.”

As related, the suspects are expected to appear in the George Magistrate’s Court on October 4, 2016. There, they will face charges of fraud and contravening Value Added Tax Act.

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Just yesterday, BuzzSouthAfrica reported that Hawks arrested an ex-government official over a R35 million tender fraud

The the 52 year-old former high-ranking government official is expected to appear in the Bellville Specialized Commercial Crime Court next month for manipulating tender processes.

The tenders, valued at about R35 million were meant to sponsor the provision of security services for local clinics in the Western Cape Province.

But then, the accused manipulated the tender processes and ensured that they were unduly awarded to undeserving companies.