A Bloemfontein-based businessman, Nicolas John Eyberg (55), was slapped with a suspended sentence and a fine after being charged of defrauding the Free State Department of Public Works of about R3 million. The Bloemfontein Magistrates’ Court sentenced the accused on 19 June based on the strength of evidence presented in court.
Capt. Christopher Singo, provincial spokesperson for the Hawks, said probing discovered that Eyberg and his company, New Horizon Belegging, defrauded the department, submitting inflated and fraudulent invoices for the property the department had leased. Eyberg was sentenced as charged for contravention of Section 4 of the Prevention of Organised Crime Act 121 of 1998 (money laundering).
“The court sentenced Eyberg to ten years’ imprisonment, wholly suspended for five years on the condition that he is not convicted of the same offence during the period of suspension. He was also sentenced to a fine of R50 000 which he is expected to pay in monthly instalments of R2 500,” said Singo.
Singo said the company had a lease agreement with the department for a building in Harrismith. He said the fraud came to light in 2015, and was reported to the Bloemfontein Hawks’ Serious Corruption Investigation team for further investigation.
“A senior official in the Free State Department of Public Works became suspicious of fraudulent payments made to Eyberg’s company. Probing discovered that the accused and his company were submitting inflated and fraudulent invoices for the property. These fraudulent payments were for rates, water and electricity. It was discovered that the department would make payments to the accused, and after receiving the payments, he would transfer the money to his co–accused. As a result of the fraudulent activities, the department was prejudiced and suffered a total loss of more than R3 million,” said Singo.
Singo said when sentencing Eyberg, the court took into consideration that the accused has repaid R3 ?850 100.09, which too was lost by the department due to fraudulent payments. He said the other accused fingered in the fraud were still on trial.
