Pretoria - The Special Investigating Unit (SIU) has been asked to probe allegations of fraud and corruption involving the purchase of properties at an inflated price of R530 million, committed during the former ANC-led administration in the City of Tshwane.
The DA this week approached the SIU to provide information that properties in question were bought by intermediaries for a lesser amount and subsequently sold to the City on the same day at a much higher price.
The alleged fraud, according to the DA, was committed between 2011 and 2016 during the ANC tenure under then mayor Kgosientso Ramakgopa and city manager Jason Ngobeni.
The ANC was dethroned from power after the 2016 municipal elections and replaced by a DA-led coalition government.
The complainants, Siobhan Muller, Tshwane’s DA member of the municipal public accounts committee, and the party’s Gauteng spokesperson for community safety Crezane Bosch, said the case lodged with the SIU emanated from a complaint from a whistle-blower who contacted Muller in 2017 with information about the purchasing of properties in the City.
The whistle-blower furnished Muller with a CD, via a third party due to fear and intimidation, with lists of properties, according to the DA.
“This CD contained information as to who the properties were bought from and how it subsequently was sold to the City, the date of purchase by the intermediary, and the same date that it was then bought by the City of Tshwane,” Bosch and Muller said.
They said the DA realised there was sufficient merit to call for a forensic investigation after interrogation of the evidence provided.
“From the information received, it appeared that properties were bought by intermediaries for a lesser amount, and sold to the City on the same day for a much higher amount. These forensic reports, which were called for through the municipal public accounts committee by DA members in 2019, were blocked subsequently during the time that the city was placed under administration,” they said.
Since 2017 the DA had been working through the systems and structures available in the council on alleged fraudulent and corrupt activities relating to the purchase of properties.
“In terms of Section 34 of the Prevention and Combating of Corrupt Activities Act 12 of 2004, the DA has a duty to report such cases to the SIU for investigation. The forensic investigations were finalised this year and the reports were placed on the intranet in October 2022 and tabled in council in November 2022,” they said.
The DA said action should be taken against officials and public representatives found guilty of corrupt conduct.
“The DA has reason to believe that, based on the evidence provided and the value of the transactions, there is fraudulent and corrupt activities to the value of at least R530 000 000 that needs to be investigated,” the pair said.
They said there was a possibility that the implicated municipal officials, who are still working for the city, could still be involved in corrupt activities or interfere with or block further investigations in this regard.
“The DA submits that the matter remains inherently urgent due to the serious nature of the case and waits on the SIU to treat this case with the seriousness and diligence it deserves.”
Pretoria News