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Former mayor and CFO arrested for alleged tender fraud

A former mayor and and his chief financial officer (CFO) have been arrested for alleged tender fraud and corruption committed in 2011.

Mandla Mamba, who used to be the mayor of Nketoana Local Municipality in the Free State was arrested with Vincent Mkhefa who used to be the CFO. They were arrested on Friday together with Caroline Nketu, who was a service provider at the municipality.

The arrests come after a whistle blower reported an alleged tender fraud and corruption committed at the municipality relating to the installation of equipment in the parks, where incorrect procurement procedures were allegedly followed, quotations were apparently inflated and kickbacks are said to have exchanged hands.

According to Hawks spokesperson Warrant Officer Lynda Steyn, investigations into the matter were conducted and it was found that Mamba sourced a service provider in March 2011 and requested a quotation for playground equipment. "The service provider submitted the quotation in this regard for the amount of R32 900. The equipment was later delivered and payment authorised,” Steyn said.

She added that during the same period, Nketu who was also a service provider, was requested to provide quotations for the same tender contract and she submitted two quotations for the amount of R198 500 each for two areas. “Mkhefa the former CFO, allegedly authorised these payments and as a result of these fraudulent activities, Nketoana Local Municipality was prejudiced and suffered a loss of approximately R364 100,” Steyn said.

According to Steyn, the accused have been charged with fraud and money laundering in contravention of the Local Government Municipal Finance Management Act, the Prevention of Organised Crime Act as well as the Prevention and Combating of Corrupt Activities Act. Mamba, Makhefa and Nketu appeared in court on Monday and were expected back in court on August 19. They were released on a R5 000 bail each.

Source: www.iol.co.za
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