SCOA WELCOMES ARREST OF SUSPECT IN R2.5 MILLION MUNICIPAL FRAUD

Parliament, The Standing Committee on Appropriations (SCOA) welcomes the news of the arrest of a 51-year-old suspect believed to be linked to the fraud of R2.5 million in the Ga-Segonyana Municipality in the Northern Cape.

The Serious Commercial Crime Investigation Unit of the Directorate of Priority Crime Investigation has been investigating the payment of R2.5 million into a false account of the Tshenelo Company, which was awarded a tender by the municipality in 2016.

The Chairperson of the committee, Mr Sfiso Buthelezi, said: Municipalities already face severe fiscal challenges, and grants received from national and provincial governments must be used effectively and efficiently to service the needs of communities. Fraudulent activities such as this, which hamper service delivery and add to the fiscal crisis, should be dealt with in the harshest manner.

Every year while processing the Appropriations Bill, the committee is asked to turn its attention to the collapse of good governance processes in municipalities and the need for a revised funding model to address municipalities’ severe financial distress. While acknowledging the need for this, the committee once again highlights the need for enhanced consequence management practices, to avoid the occurrence of fraudulent activities.

Source: Parliament of the Republic of South Africa