Director, company in court for fraud

A company director who allegedly submitted a tender document with proof of business address in Mthatha, OR Tambo region, and a certificate of completion of works issued by eThekwini Metropolitan Municipality, has appeared in court for tender fraud.

Nceba Ntlokwana, 43, and his business entity, Squad Five Productions CC, were arrested on Wednesday, June 24, by the Mthatha-based Serious Commercial Crime Investigation (SCCI) unit of the Hawks on charges of fraud, forgery and uttering.

Eastern Cape Hawks spokesperson Captain Yolisa Mgolodela said it is alleged that in January 2020, the Eastern Cape Department of Human Settlements (ECDHS) advertised a tender to appoint a service provider to supply and erect 292 temporary shelters in the OR Tambo region.

Among the pre-qualifications of the specification when the tender was advertised was that the prospective service provider must have a business in the OR Tambo region and previous experience in similar projects.

At the close of bids, reportedly eight tender documents were received by the department, including that of Squad Five Production CC.

“Ntlokwana, the director of Squad Five Production, allegedly submitted a tender document with a proof of business address in Mthatha, OR Tambo region, and a certificate of completion of works issued by eThekwini Metropolitan Municipality,” Mgolodela said.

“Based on the documentation submitted, both the Bid Adjudication Committee (BAC) and the Bid Evaluation Committee (BEC) recommended and subsequently awarded the tender in the amount of more than R18.3 million to Squad Five Production CC.”

Mgolodela said that during the supply and erection period, a whistle was blown about the irregular awarding of a tender which led to the investigation by the Hawks.

“The investigation revealed that the proof of business address on the lease agreement and the certificate of completion of work was indeed fraudulent,” Mgolodela said.

“The owner of the property reportedly had no knowledge of the lease agreement and the eThekwini Metropolitan Municipality rejected the certificate of completion of work.

“At the time of whistle-blowing, the department was already prejudiced by more than R6 million,” Mgolodela said.

“On June 26, Ntlokwana and his company were arrested by the Hawks and appeared in the Mthatha Specialised Commercial Crime Court where they were released on R10 000 bail. The matter was remanded to August 27 for docket contents.”

Acting Provincial Hawks Head Brigadier Fernando Luis gave a thumbs up to the investigating team for their swiftness in finalising the investigation for the perpetrator to face Lady Justice sooner than expected.