KZN Treasury welcomes fraud arrests at eMadlangeni Municipality

Four members of a Hoopstad family and their business entity have appeared in court on charges of fraud, theft and money laundering
The Hawks have arrested several people in connection with alleged fraud at eMadlangeni Municipality.

KZN Treasury welcomes fraud arrests at eMadlangeni Municipality

Four members of a Hoopstad family and their business entity have appeared in court on charges of fraud, theft and money laundering
The Hawks have arrested several people in connection with alleged fraud at eMadlangeni Municipality.

Law enforcement agencies have arrested several individuals in connection with an alleged R2 million fraud case at the eMadlangeni Local Municipality in KwaZulu-Natal.

The Hawks, working with the National Prosecuting Authority and other agencies, apprehended former municipal officials and private sector representatives on Thursday.

They face charges relating to payments allegedly made for a feasibility study that was never carried out.

KwaZulu-Natal Finance MEC Francois Rodgers welcomed the arrests and praised investigators for their work on the case.

He said the alleged fraud has hit a municipality serving mainly poor communities particularly hard.

“Every rand lost through corruption is a rand taken away from service delivery and community development,” Rodgers said.

The MEC called on local government officials to carry out their duties with integrity and remember their primary role is to serve communities.

“Communities place their trust in public representatives and officials to improve lives, not to enrich themselves at the expense of the people they are meant to serve,” he said.

Rodgers noted that corruption within supply chain management processes continues to damage municipalities and weaken public trust in government institutions.

The provincial Treasury has committed to supporting municipalities through better financial governance, technical assistance and capacity-building programmes designed to strengthen accountability.

The department said it will monitor the case as it moves through the courts.

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