Hawks arrest couple on fraud charges

The Hawks arrested a prominent Ladysmith power couple on fraud charges on Friday morning.
Well-known business owners, husband and wife Jogenthren ‘Yogan’ Naidoo (41) and Pramitha ‘Pam’ Naidoo (34), were arrested on charges relating to fraud pertaining to contract and tender irregularities.

The couple appeared in the Ladysmith Magistrate’s Court looking uneasy as national newspaper journalists crowded the courtroom.
The accused were granted bail of R50,000 (husband) and R30,000 (wife) respectively at the request of their attorney, Sergie Brimiah.
Both face charges of fraud involving R33.7 million.

The state alleged in its provisional charge sheet that the couple defrauded uThukela District Municipality by manipulating the tender process.
Jogenthren is the owner of Ace Motor Spares in Ladysmith and his wife Pramitha is the sole member of Squarehill Investments ICC which trades as Mapchem.
In order to provide clean drinking water to the rural communities, uThukela obtains chemicals from service providers who are required to tender for the contract to supply them.
In court papers, it was revealed that Mapchem won tenders totalling R33,786,122 between the years 2006 and 2011.
How the fraud took place was laid out in the provincial charge sheet.

Basically, it entailed the accused being awarded the tenders by making a number of misrepresentations to uThukela, including quoting prices that were much lower than the market price for the chemicals.
After winning the tenders, the prices  would be increased by way of supplying fraudulent claims that their supplier, Sudchemy, had increased its prices, necessitating an increase in the agreed contract price.

This was found not to have been true.
The couple will have to make themselves present at the Ladysmith police station on a weekly basis as part of their bail conditions.
The case was remanded until March 27 next year, pending further investigation.