Former Municipal Officer, Service Provider, and Company Arrested for R530,000 Fraud

 

Bultfontein, Free State – The Hawks’ Serious Commercial Crime Investigation unit in Welkom has arrested two individuals and charged a company in connection with fraudulent activities that defrauded the Bultfontein municipality of over half a million rand.

According to authorities, the arrests stem from an incident dating back to August 2019, when the then-Accounting Officer of the municipality allegedly appointed a service provider to handle debt collection services—bypassing required municipal supply chain management procedures.

Following the appointment, a payment totaling R530,190.80 was transferred to the service provider’s bank account. However, an investigation initiated after a report from the Auditor-General South Africa (AGSA) revealed that the service provider had never delivered the services for which they were paid.

The AGSA report, tabled before municipal councillors, also highlighted that the service provider had submitted fraudulent documentation and invoices, leading to a loss categorized as irregular and wasteful expenditure.

A criminal case was opened and subsequently handed over to the Hawks’ Serious Commercial Crime Investigation team. After a thorough probe, the former municipal official, the service provider, and the associated company were all charged with:

Fraud Contravention of the Municipal Finance Management Act Contravention of the Debt Collectors Act

The suspects, aged 42 and 57, are scheduled to appear before the Bultfontein Magistrates’ Court on 28 May 2025.

This case marks another serious step by South African law enforcement in cracking down on public sector corruption and financial misconduct. The Hawks have reaffirmed their commitment to rooting out fraud and holding individuals accountable for mismanagement of public funds.