BETHLEHEM – The alleged tender fraud, theft, and money laundering case involving the former municipal manager of the Maluti-A-Phofung Local Municipality and the director of a private company (Lesedi Khanya Energy) is set to continue on 22 January in the Bethlehem Magistrates’ Court. The suspects are Futhulu Patrick Mothamaha (52), former municipal manager, and Lelokonyane Isak Letseng (45), director of the private company. Both are out on bail set at R10 000 each.
The duo’s appearance followed their arrests by Bethlehem’s Serious Commercial Crime Investigation detectives after the findings of the investigations into alleged fraud at the cash-strapped ANC-led municipality. Mothamaha faces additional charges of contravention of the Municipal Finance Management Act. They were arrested on 18 November.
Lt Col Zweli Mohobeleli, provincial spokesperson for the Hawks, said the fraud matter entails a tender to install electricity transformers in the municipality area.
“In 2021, the company was awarded a tender worth R1.9 million to install transformers in the Maluti-A-Phofung Local Municipality. However, the transformers were never delivered. It later emerged that Letseng had submitted an R1.9 million invoice, which was authorised by Mothamaha. The municipality made the payment and thereby suffered a loss,” said Mohobeleli.
Letseng is not new to fraud case. In 2024, he was convicted of fraud relating to Covid-19 Temporary Employment Relief Scheme (TERS) funds together with his other companies, Bophelo Botle Solutions (Pty) Ltd and Izuz Gibbor (Pty) Ltd. He pleaded guilty and was sentenced to ten years’ imprisonment, wholly suspended for five years on condition that he is not convicted of fraud, theft, or any crime involving dishonesty. He was instructed to repay the UIF R1 780 017.24 – including 11.25% interest – within five years.
The final payment is expected on or before 30 November 2029.
On money laundering charges, Letseng was sentenced to a fine of R10 million, wholly suspended for five years on condition that he is not convicted of the same offence during the period of suspension.
Bophelo Botle Solutions was sentenced to a fine of R2 million for fraud and R3 million for money laundering, while Izuz Gibbor was fined R2 million for fraud and R2 million for money laundering.
It was discovered that Letseng applied for Covid-19 TERS funding during the period of March 2020 to December 2020, on behalf of ghost workers. The UIF reportedly made nine payments totaling an estimated R800 000 to Bophelo between September 2020 and December 2020. An investigation relating to Izuz Gibbor discovered the UIF paid about R101 555.92 between July 2020 and December 2021.
