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DA lays fraud charge over R2.5m municipal payout

The DA has laid a criminal charge against former members of the Greater Letaba municipality in Limpopo after they allegedly approved a fraudulent tender claim. DA MP Jacques Smalle yesterday said he had laid the charges against the municipality’s former manager, chief financial officer and its technical director on Friday. The municipality could not be reached for comment. Smalle said the officials allegedly approved a payment of R2.5 million last year to a former employee of Star Mill Developers – the company contracted to construct roads and storm water infrastructure in Modjadjiskloof.

“This payment was effected without proper checks, apparently when this employee had merely made a claim to the municipality that the tender was theirs,” Smalle said in a statement. “The main contractor had failed to carry out its responsibilities under the tender agreement. Rather than the municipal officials demanding full performance by the contractor or the return of money already paid, they went ahead to approve payments to this disgruntled employee.” Smalle claimed the officials had contravened the Municipal Finance Management Act. “This will serve as a deterrent for future officials who might want to do the same,” he said.

Source: www.iol.co.za

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DA lays fraud charge over R2.5m municipal payout

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