The Hawks’ Serious Corruption Investigation (SCI) unit raided the Moqhaka Local Municipality offices in Kroonstad on Friday 9 January as part of a major fraud and corruption investigation.
The coordinated search-and-seizure operation involved the Welkom SCI unit, Kroonstad Public Order Police, and the Local Criminal Record Centre, focusing on procurement irregularities involving a service provider.
Contract at centre of investigation
The investigation centres on a contract awarded to Korone Engineering Co. in December 2022. The company was appointed to provide wastewater treatment maintenance services and maintain sewer and water pump stations for three years.
The contract included installing two generators, two water pumps, two water meters, and drilling two boreholes in Steynsrus.
However, investigators discovered that Moqhaka Municipality paid Korone Engineering approximately R6 441 871.75 for services and goods that were never delivered.
Inflated claims uncovered
The investigation revealed that the service provider submitted fraudulent claims, inflating quantities of items provided. These included claims for four generators instead of two, water pumps measuring 3 meters instead of the specified 1.7 meters, and four boreholes instead of two.
Municipal officials are also implicated for endorsing and acknowledging that services and goods had been delivered despite evidence to the contrary.
Documents seized
During Friday’s operation, investigators seized crucial documents including payment vouchers and related records, which will form part of the ongoing investigation.
No arrests have been made yet, but the Hawks confirmed that investigations are continuing to uncover the full extent of the fraudulent activities.
