After a series of “marathon arrests” in the Northern Cape, several suspects appeared in court for charges of fraud, money laundering, and withholding third party payments.
A team of the Kimberley Serious Commercial Crime Investigation unit arrested Randile Jacobs Shuping (38) on Tuesday, 27 March, in Victoria West in the Northern Cape.
Shuping is accused of withholding third party payments while serving as a chief financial officer at the Thembelihle Local Municipality, says Lt. Col Tebogo Thebe, spokesperson for the Directorate for Priority Crime Investigation (Hawks).
The contravention apparently took place from February 2021 to July 2023. One of the affected third parties is the Consolidated Retirement Pension Fund.
This contravention left the Thembelihle Local Municipality, serving the towns of Hopetown and Strydenburg, with a debt of over R6 million in pension fund contributions for employees, thereby contravening Section 13A of the Pension Fund Act, with 1 800 counts of the said contravention.
After his arrest, Shuping was immediately taken to the Hopetown Magistrate Court. He was released on R5 000 bail and the his next court appearance will be on 25 April.
‘Pocketing cash payments for personal use’
On the same day, the team arrested two cashiers of the Phokwane Local Municipality in Hartswater for fraud, alternative theft and money laundering.
Thato Morake (34) and Ayanda Ndwanya (35) are accused of defrauding the municipality from January 2022 to August 2023.
Thebe says auditing undertaken by the municipality revealed the duo captured municipal payments as direct deposits in the internal financial ledgers while it did not reflect in the bank statements. It appears that the suspects were pocketing cash payments for personal use and reflecting it as directs deposits.
The municipality suffered a total loss of over R3 million.
Investment promises ‘never honoured’
In another unrelated case, also in Hartswater, Ruan Maritz (30) was arrested for fraud and money laundering. His arrest took place on Tuesday, 25 March, and was also carried out by members of the Serious Commercial Crime Investigation unit.
Allegations are that the accused misrepresented to the complainants and other victims that he is a broker for Quick Trade Investment and Forex Trading. The investment contract stipulated that when clients invest 50%, the broker will add the same percentage, a promise the suspect apparently never honoured.
The victims suffered a loss amounting to R2 million.
Maritz made a brief appearance before the Hartswater Magistrate Court on Wednesday, 26 March, and was granted bail of R50 000. The matter is postponed to 12 May.
The provincial head of the Hawks in the Northern Cape, Maj. Gen. Stephen Mabuela, expressed his appreciation to the investigation teams for proper investigation and placing the dockets before court. This is in line with the Hawks’ motto of “Seek, Find and Strike”.
“The plan is to intensify the (amount of) arrests and place most of the matters before courts,” Mabuela concluded.
Municipal manager, CFO sentenced
In a previous and unrelated case, the Kimberley Commercial Crimes Court sentenced the former municipal manager (MM) of the Karoo Hoogland Municipality with four years direct imprisonment. The three main towns served by this municipality is Fraserburg, Sutherland and Williston.
Louis Nothnagel (63) was charged with theft and contravention of the Municipal Finance Management Act (MFMA). He was found guilty on 16 July 2024, and was sentenced on 11 March.
Nothnagel was charged alongside the former chief financial officer (CFO) who passed away shortly after being arrested in February 2013. The former MM and CFO colluded and paid each other performance bonuses while at the municipality, without the necessary council approvals and in contravention of applicable regulations.
Arina Botha (53), the wife of the deceased CFO, was found guilty on the alternative count of theft as charged in count 2 to 26, as well as money laundering as per count 27 to 52. She was sentenced to five years direct imprisonment and was further ordered to pay R200 000 back to the state.
Nothnagel was found guilty on count 1 to 26 of fraud, and 53 counts of theft in contravention of local government MFMA of 2003. He was sentenced to a four year direct imprisonment and ordered to pay back R500 000 to the state.
Mabuela commended the work of his members and the prosecution.
“Local government corruption has to be arrested at some stage, this conviction sends the right message,” he said.
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