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‘Fronting’ accused appears in court

Multimillion fraud accused Rajkapoor “Teddy” Lakraj appeared in Durban’s Commercial Crime Court yesterday. He has been charged with 148 counts of fraud and corruption, including that he used his domestic worker Nomfanelo Beauty Maqephula and her daughter Hlengiwe Maqephula as fronts to obtain contracts from the provincial Public Works Department. In total, through his two companies – Quantum Leap Investments 24 (Pty) Ltd, trading as Teddy’s Construction, and Dreamteam Trading 562 cc, trading as Siyasiza Builders – Lakraj secured 3 000 contracts worth at least R87 million from the department over several years.

Lakraj allegedly committed fraud by “controlling” both companies while the tender documents reflected that the controlling shareholders were the Maqephulas. He was also charged with invoicing the department for work not done. Three weeks ago, R68m of Lakraj’s assets was restrained by the Asset Forfeiture Unit, after an order was granted. The assets include more than R35m in cash, two properties and several vehicles. The assets would be controlled by curator Eugene Nel and, if Lakraj is found guilty, they can be confiscated by the state.

Magistrate Sithembiso Maphumulo expressed concern yesterday that documents from the docket had not as yet been supplied to Lakraj’s attorney Bob Bahadur so that he could prepare for the trial. “It has to be done now because it was adjourned on the previous occasion for the discovery of documents.” The case was adjourned to April 26 and Lakraj is out on R200 000 bail. Five Public Works Department officials – AC Gunther, DR Cameron-Gunn, TB van der Merwe, L van Vuuren and O Madanjit – who allegedly helped Lakraj have also been charged with fraud. They apparently received R78 000 in kickbacks from Lakraj.

Source: iol.co.za

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‘Fronting’ accused appears in court

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