KUGOMPO CITY – The Serious Commercial Crime Investigation unit (SCCI) in KuGompo City (previously known as East London) has welcomed the conviction of two individuals in a municipal procurement fraud case that resulted in losses of R1.9 million.
Zukile Innocent Msipa (44) and Unathi Mbeka (45) were found guilty on three counts of fraud each in the East London Regional Court yesterday (30 March).
According to provincial Hawks spokesperson Warrant Officer Ndiphiwe Mhlakuvana, the offences were committed between 2018 and 2019 and stemmed from a public tender issued by the Ngqushwa Local Municipality for the electrification of households in several villages.
“AM Engineering Consulting (Pty) Ltd, which had been appointed as the service provider, submitted invoices claiming payment for services that were never rendered,” said Mhlakuvana.
Investigations revealed that a municipal official, acting in the capacity of an engineer, knowingly certified the invoices as legitimate by signing off on them, falsely indicating that contractual obligations had been fulfilled.
This misrepresentation enabled the unlawful payment of municipal funds, resulting in a total loss of R1,913,569.07 (approximately R1.9 million).
AM Engineering Consulting (Pty) Ltd pleaded guilty on 5 February and was convicted on three counts of fraud. The company was sentenced to a caution and discharge.
The matter has been postponed to 15 April for sentencing, with bail set at R10,000 for each accused.
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