THE Hibiscus Coast Municipality has acted on allegations that funding has been fraudently solicited from a financial institution using the municipality’s name.
“A syndicate, thought to include a municipal employee, solicited funding from financial institutions by furnishing fraudulent information,” HCM municipal manager Max Mbili told media at a briefing HCM’s council chambers on Tuesday this week.
Mr Mbili explained that the municipality picked up on this problem when one of the financial institutions wanted to confirm the award of a ‘R42-million tender’ allegedly awarded to a bogus company by HCM.
“Upon investigation, it transpired that a municipal employee’s name and work e-mail account were used,” said Mr Mbili.
A preliminary report warranted a criminal case being opened with SAPS and the official concerned will be suspended and investigated.
When the official was served with the notice of the intention to suspend him, he resigned, bringing to an end the internal investigation. However the criminal case opened by the municipal manager still stands.
“The municipality would like to re-iterate its commitment to clean administration, and any individual found to be in breach of legislation and council’s rules of order will be dealt with accordingly,” said Mr Mbili.
“The municipality would also like to encourage members of the community to report any suspected fraudulent or corrupt activity to the office of the municipal manager. Alternatively, the presidential hotline 17737 or COGTA fraud hotline 0800 701701 may be used,” he concluded.
Police spokesman Lieutenant-Colonel Zandra Wiid, confirmed that a case had been opened by the municipality.
“Two fraud dockets, involving two different suspects, have been opened and are currently under investigation. No arrests have been made as yet,” she said.
