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EASTERN CAPE ACTING MUNICIPAL MANAGER AND SERVICE PROVIDER ARRESTED FOR FRAUD AND CORRUPTION
2020/08/21      |  Written By:  Captain L Ramovha   |   Province:  Eastern Cape

PRETORIA – Acting Nelson Mandela Municipal Manager and a Director of a private entity, Jeke and Qadi Trading cc, have been arrested by the Hawks’ Serious Commercial Crime Investigation in collaboration with the Port Elizabeth Technical Response Team on Friday morning for alleged fraud and corruption in terms of the Prevention and Combating of Corrupt Activities Act.

The former Acting Municipal Manager and the Director of Jeke and Qadi, a construction company allegedly colluded and deceived the Eastern Cape Department of Human Settlements to fund several Reconstruction and Development Housing Projects (RDP), worth almost R13 million in Port Elizabeth. The Municipality acted as the developer of these projects and appointed contractors to do the work, from a supplier data-base of the Municipality. These appointments were required to be done in strict compliance with the procurement policy.

It is alleged in 2014, the Acting Municipality Manager interfered with the bid committee and its recommendations and ensured that the said construction company was unduly awarded a contract for the work, on the Wells Estate project in blatant disregard of supply chain management policy which is aimed at, inter alia, preventing favouritism and corrupt activities. The Municipal Manager allegedly received a payment of R900 000, as gratification from the Director of the rewarded entity after he used his position of authority to influence the Bid Allocations committee.

Both suspects are expected to appear at the Specialised Commercial Court in Port Elizabeth, this morning.