JAIL TIME FOR R21.8M FRAUD!

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JAIL TIME FOR R21.8M FRAUD!

A
businessman, two former Ekurhuleni city council officials and their two
companies have been convicted of corruption, money laundering and defrauding
the municipality of R21.8m in 2007.Velero
David, the owner of Meropa Sechabeng Technology, Nilesh Singh, former executive
director of the city’s ICT department, and Andrew Mphushomadi, the city’s
former chief IT architect, were found guilty in the Commercial Crimes Court in
Pretoria on May 23.Mphushomadi
and Singh had worked for the city at the time the crimes were committed.The case
which was successfully investigated by the Hawks, emanated from a tender worth
R21.8m to supply and maintain computers in the municipality.In a
statement issued by the Hawks this week, it said at the time of the tender, the
bid policy implemented by the municipality provided a strict list of
measurements to combat abuse such as fraud, corruption and favouritism.”The
tender was then issued to Meropa Sechabeng Tecnology CC, who had barely been in
existence for 10 months. The sole member of the company was David who declared
during the bidding process that he had no relationship with persons in the
service of the state, or anyone who may be involved in the evaluation and
adjudication of the bid.”However,
unbeknown to the municipality at the time, David was related through marriage
to Nilesh Singh, who as the executive director of the IT department of the
municipality and was instrumental in awarding the tender.”Singh also
arranged for interior decorating services for Meropa Sechabeng. He resigned and
joined the company shortly after the tender was awarded.Mphushomadi
was a senior manager within the municipality’s IT department and was also
involved in the specifications of the said tender.He was also
a member of Nanga Transport CC.Shortly
after the tender was awarded, Nanga purchased a number of Mercedes Benz trucks
which cost close to R4m paid for by Meropa Sechaba with the money received from
the municipality. Meropa Sechaba also splashed out around R8m cash from the
tender on 16 luxury vehicles.Singh and
Velero (including his company) were found guilty on charges of corruption and
fraud. Mphushomadi and his company were also convicted on a charge of money
laundering and fraud.The matter
has been postponed to July 31 for pre-sentence reports.  SOURCE:
NEWS24

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