More on alleged fraud by municipal employees

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The Hibiscus Coast Municipality has been rocked by the alleged fraudulent activities to the tune of R42-million of an ex-employee, and all indications are that the same thing has been happening at the Ugu District Municipality.

The HCM employee, who resigned after the alleged misdeed was discovered,  was apparently part of a syndicate which solicited funding from financial institutions using the name of the municipality.  The employee allegedly used his name and work e-mail account.   The alleged scam was picked up when one of the institutions wanted to confirm an award of a “R42-million tender” to a bogus company, which had purportedly been awarded by the Hibiscus Coast.

At a media briefing on Tuesday, Municipal Manager Max Mbili said a preliminary report warranted a criminal case to be opened with the SAPS, and the intention was to suspend the employeee.  However, before that could be done, he resigned.  Mr. Mbili stressed that the HCM did not lose any money.

eHowzit South Coast’s own investigation revealed that a criminal charge had indeed been laid against the employee, although at that stage, he had not yet been charged by the police, therefore his name could not be made public.  In addition, police spokesperson Luitenant-Colonel Zandra Wiid revealed that a charge had also been laid against a second person. Reliable eHowzit South Coast sources have confirmed that the second person is an employee of the Ugu District Municipality.  The names of the two people are known to eHowzit South Coast, and they will be made public when it is possible to do so.

After enquiries about the new development by eHowzit South Coast, the Ugu District Municipality decided to hold a media briefing on Monday afternoon.  We will bring you a report on that briefing immediately afterwards.     ( More details on the original HCM statement can be found in an earlier report on Tuesday’s briefing.)

At Tuesday’s briefing, Municipal Manager Mbili and Senior Manager: Mayoralty and Communications Simon Soboyisa answered media questions……


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