Potchefstroom Choppies dismissed its branch- and administrative managers in connection with allegations of fraud last month.
The dismissals relate to the J.B. Marks municipal food parcels account for funeral assistance for indigent families.
According to a reliable source, the municipality deposited money into the account every month. The problems arose when a municipal official started collecting the balance in cash payments every month.
‘This has been happening since June last year and the irregularities were detected in March and reported to head office. The cash collected over the ten-month period allegedly amounted to hundreds of thousands. The two employees were dismissed after due process was followed,’ he said.
The Herald could not determine where the cash went to after the official collected it.
Choppies head office confirms the fraud
Hendrick Sematla, the Choppies’ security manager at head office confirmed that the two employees had, indeed, been dismissed on allegations of fraud.
He also confirmed that the municipality has a grocery account with Choppies into which it deposits money. It then sends disadvantaged families to the store to collect their grocery parcels.
Sematla says they picked up that the cash was leaving the store after a tip-off from a reliable source. ‘We then started investigating the fraud allegations,’ he says.
He could not say exactly how much the given municipal employee had collected as the investigation is still in progress. He did say, however, that the matter has been reported to the police.
The Herald has since asked whether the store would continue doing business with the municipality. ‘It would depend on the outcome of the full investigation report,’ he said. ‘We have already informed the mayor’s office about the incident.’
Municipality will engage with officials concerned and investigate if warranted
Victor Boqo, the J.B. Marks mayoral spokesperson confirmed that the municipality did, indeed, have an account with Choppies for indigent food parcels.
‘Choppies stopped the account after verbally informing the municipality that they are investigating some of its employees internally.
To date, the office of the executive mayor has received neither any formal complaint nor the outcome of the investigation.
The office of the executive mayor is not aware of any of its officials being implicated. The municipality will raise the matter with those concerned and, if warranted, investigations will be done,’ he said.
*This is a developing story.
