The Special Investigating Unit (SIU) has welcomed the sentencing of two former senior City of Ekurhuleni Metropolitan Municipality officials as well as their accomplices after they were convicted of tender fraud, money laundering and corruption which cost the municipality at least R21.8 million.
The Pretoria Commercial Crimes Court sentenced the convicts as follows:
- Former Ekurhuleni IT executive Nilesh Singh – sentenced to 10 years for fraud
- Former Ekurhuleni IT senior manager Andrew Mphushomadi – was given a 10 year prison sentence with four years suspended for money laundering
- Businessman Velero David was sentenced to 10 years for fraud and 15 years for corruption
- David’s business, Meropa Sechaba Technology, received a R600 000 fine wholly suspended
- Nanga Transport which was represented by Mphushomadi’s wife, Princes Dlongolo, also received a R600 000 fine wholly suspended
According to SIU spokesperson Kaizer Kganyago, they were found guilty following a probe, which revealed that David and his business were fraudulently awarded a tender for the supply and maintenance of computer equipment at the municipality.
“David…declared during the bidding process that he had no relationship with persons in the service of the State or who may be involved in the evaluation and adjudication of the bid. Unbeknown to [the City of Ekurhuleni Metropolitan Municipality] at the time, David was related through marriage to Singh [an]…influential person in the awarding of the tender. Singh resigned and joined Meropa shortly after the bid was awarded.
“Mphushomadi…was also involved in the allocation of the tender [and] it emerged during the investigation that, shortly after the tender was awarded, [his wife’s company] purchased a number of Mercedes Benz trucks close to R4 million, paid for by Meropa from the money received from the [City of Ekurhuleni Metropolitan Municipality]. Meropa also splashed out around R8 million cash from the…tender on 16 luxury vehicles,” Kganyago said.
He said the fleet of luxury cars and property has been forfeited to the state in a bid to recover the municipality’s losses.
“The outcome of the Specialised Commercial Crime Court is a continuation of implementation of the SIU investigation outcomes and consequence management to recover financial losses suffered by state institutions and hold those responsible to account for their actions through a justice process in accordance with the SIU Act 74 of 1996,” Kganyago said. – SAnews.gov.za
