Man arrested in Pretoria for R21m ‘fraud’ gets bail
Over R20-million was funded to upskill developing driving schools and their learners, however, the money was allegedly used for personal gain.
A 52-year-old man has been granted R50 000 bail after his arrest in Pretoria on Monday on a charge of fraud.
North West NPA spokesperson Henry Mamothame said the man allegedly defrauded about 40 driving schools and learner drivers of approximately R21-million.
The matter was postponed to July 27 pending further investigation.
OVER R21-MILLION WAS PAID
Mamothame said the funds were part of a tender to upskill developing driving schools and their learners.
“Caswell Mthombeni appeared in the Mahikeng magistrate’s court on June 27, facing charges of fraud and money laundering,” said Mamothame.
Mamothame said Mthombeni allegedly failed to honour his contractual agreement with the driving schools and spent the money on himself, which led to the government incurring losses to the tune of over R21-million.
He said in October 2015, the suspect was appointed by the Department of Community Safety and Transport Management in the North West to help it achieve its road safety objectives.
Mamothame said the objective was to teach unemployed 18-year-olds and matriculants, that had not found employment, driving as well as train to upskill owners of accredited and legal driving schools in the area.
ARRESTED BY HAWKS FOR FRAUD
“An amount of over R21-million was paid to the suspect for the commencement of the programme.
“Over 40 driving schools allegedly signed contracts with the suspect’s company, as beneficiaries of the programme. It is further alleged that these driving schools used their funds to participate in the programme, in anticipation that the suspect will compensate them.”
Mthombeni was arrested by Hawks’ serious corruption investigation and priority crime specialised investigation and tactical operations management in Pretoria on June 26.
North West Hawks head Major-General Patrick Mbotho and his NPA counterpart, director for public prosecutions, Dr Rachel Makhari commended the collaboration between the investigation team and prosecution.
They vowed to continue working together in clamping down on corruption in the province.
LISTEN:
Motoring industry opens doors of opportunity to those with disabilities
Do you have more information about the story?
Please send us an email to editorial@rekord.co.za or phone us on 083 625 4114.
For free breaking and community news, visit Rekord’s websites: Rekord East
For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram
