Slip-up of R5,5m

MOKOPANE – A FRAUDULENT transaction cost the Mogalakwena Municipality a loss of R5, 57 million after it was detected by officials in the finance department last Thursday.

The payment was earmarked to four different service providers but the report that was drafted by management indicates that the money was paid into different accounts and not into the rightful accounts of the service providers, said Malesela Selokela, divisional head of communications in a media statement.

Newly appointed mayor Malesela Parks Sebatjane said a case of fraud has been opened with commercial crime.

“We have put measures into place to curb the recurrence of this kind of fraudulent activity and also to protect the municipal sum that is available now.

A thorough police investigation is underway and at the moment we cannot confirm whether it is an internal or external matter. Once investigations are concluded we will be able to point as to what really happened.”

Sebatjane added: “We view this incident in a very serious light and if it can be found that any of our employees had a hand in this we will take urgent measures.

“We have also informed the department of provincial treasury (DPT) and the department of corporative governance, human settlements and traditional affairs (CoGHSTA).

“The DPT had already dispatched people to assist the municipality with regard to this situation.”

“Immediately after this was detected by the officials in our finance department all transactions and payments were frozen, and the computers which were used for those transactions has been confiscated,” he said.

“These are the only details we can share since investigations are ongoing,” Sebatjane concluded.