KLERKSDORP – The investigation by the Hawks’ Serious Corruption Investigation and Priority Crime Specialised Investigation teams into the fraud at the City of Matlosana Municipality has culminated in a preservation order of three cars worth R2.7 million out of four vehicles. The order is part of concerted efforts to recover the more than R6 million allegedly swindled from the municipality.
It was executed yesterday, Thursday, 9 October. The Hawks and the National Prosecuting Authority (NPA) of South Africa confirmed in a joint statement that the order was granted in the High Court of South Africa, North West Division on 26 September. The Directorate for Priority Crime Investigation (DPCI) and the National Prosecuting Authority’s Asset Forfeiture Unit (AFU) applied for the order.
The preservation covers three luxury vehicles: a Mercedes-Benz CLA200, Range Rover Evoque, and Maserati Levante S M156. Combined, the cars’ value is estimated at R2.7 million.
Lt Col Tinyiko Mathebula, spokesperson for the Hawks, said the investigation was launched in August last year, culminating in the arrest of six individuals, who include officials of the municipality and director of service provider. He said intensive investigation revealed that employees of the municipality allegedly colluded with a service provider called Variegated (Pty) Ltd to defraud the municipality.
“The Hawks’ Serious Corruption Investigation and Priority Crime Specialised Investigation teams revealed that between September 2023 and January 2024, the City of Matlosana Municipality paid a service provider, called Variegated (Pty) Ltd, over R6 million for services which were never rendered. Further investigation uncovered that from the amount paid to Variegated, more than R4 million was transferred to a vehicle dealership for the purchase of luxury vehicles,” said Lt Col Tinyiko Mathebula, spokesperson for the Hawks. He said high-end vehicles purchased include a Porsche valued at R2.3 million and the three vehicles for which the preservation order was granted.
Mathebula said the investigations revealed top officials, as well as lower-ranking employees of the municipality and the director of the service provider, were allegedly involved in siphoning the money from the municipality. Senior officials implicated are Mercy Phetla, chief financial officer, and Josephine Tsimane, municipal stores official. Lower-ranking employees are Anga Shongwe, Mathapelo Puswe, and Vincent Shongwe as well as Tiisetso Sebetlela is the director of Variegated. The suspects allegedly distributed the swindled money among themselves.
Mathebula said all six suspects are expected to reappear in the Specialised Commercial Crime Court in Klerksdorp on 27 October.
Brigadier Georgia Moos, acting head of the Hawks, and Dr Rachel Makhari, the Director of Public Prosecutions in the North West, have commended the collaborative work between the two entities which resulted in securing the preservation order of these movable assets.
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