PRETORIA – The Hawks National Clean Audit Task Team conducted a search and seizure operation at Ethekwini Local Municipality on Thursday in relation to alleged fraud, corruption and money laundering.
The operation follows allegations of awarding of tenders by the municipality without following due processes. The monetary value involved is approximately R200 million.
Since 2016 to date, various companies and other service providers allegedly colluded with municipal officials and were paid millions of rands for fictitious work.
It is alleged municipal officials endorsed certain companies and also registered fictitious businesses in order for them to be awarded lucrative tenders thus benefiting from unlawful and fraudulent payments. Most the companies were not even registered on the municipalities data base.
The operation was successful and has led to the seizure of a number of documents and electronic equipment which will assist in the ongoing probe. No arrests were effected at this stage, pending investigations which are at an advance stage.