R5.57m transfer scam

MOKOPANE - The Mogalakwena Municipality has opened a case of fraud at the police’s commercial crime unit after it was defrauded of R5.57-million last week.

A fraudulent transaction, by means of four different payments to so-called service providers, was made from computers within the municipality. "However, the money ended up in different accounts and not that of the rightful service providers," said mayor Malesela Parks Sebatjane in a statement while referring to a report from management. Sebatjane added that they have put measures in place to curb the recurrence of such kind of fraudulent activity and also to protect the municipal sum that is available.

Although it cannot be confirmed whether it is an internal or external matter, Sebatjane said the crime is considered as serious and that urgent measures will be taken, should anyone within the institution be found to have a hand in the act.

Immediately after detecting the fraudulent activity, all transactions and payments were frozen by officials in the municipality’s financial department.

The department of provincial treasury (DPT) and the department of corporate governance, human settlements and traditional affairs (CoGHSTA) have already dispatched people to assist the municipality. "We cannot go into lots of details since police investigations are under way," concluded Sebatjane.