The Special Tribunal dismisses a counterclaim by contractors accused of submitting a fake invoice and engaging in fraud during the construction of the Vosloorus Taxi Rank. The SIU investigation uncovered evidence of collusion and false claims, leading to the dismissal of the counterclaim and an order for the contractors to cover legal costs.
The Special Tribunal has dismissed a counterclaim brought by Kubwa Kazi Construction, Lebaka Construction, and their directors in a R1.9 million fraud case related to the Vosloorus Taxi Rank construction project. The SIU investigation uncovered 'strong evidence' of fraud, alleging that the contractors submitted a fake invoice for R1.97 million, claiming payment for materials never delivered.
The investigation revealed a web of deceit, including collusion among the defendants—Jacob Phungula, Veronica Z. Mabena, and Joy M. Seale—who allegedly prepared and submitted fraudulent documents to siphon money from the municipality. Shockingly, some of the defendants reportedly admitted to knowing about the false claims.The accused attempted to counterclaim, alleging they were owed payment for an unrelated project by the Ekurhuleni Metropolitan Municipality. However, the Special Tribunal dismissed this counterclaim on January 14, 2025, ruling it lacked jurisdiction. The Tribunal further ordered Kubwa Kazi Construction, Lebaka Construction, and their directors to cover the legal costs incurred by both the SIU and the Ekurhuleni Metropolitan Municipality. The SIU states that its investigation was conducted under Proclamation R28 of 2018, which authorized a probe into allegations of maladministration, unauthorized expenditure, and fraudulent activities linked to public transport facility contracts in Ekurhuleni. Under the SIU Act, the unit can refer evidence of criminal conduct uncovered during its investigations to the National Prosecuting Authority (NPA) for potential prosecution. The Act also empowers the SIU to initiate civil actions to recover funds lost to fraud, corruption, or maladministration. The victory in this case is a significant milestone in the SIU's mission to safeguard public funds, they say. 'The dismissal of the counterclaim not only strengthens the case against the accused but also sends a clear message that attempts to derail justice will not be tolerated,' the SIU stated.
CORRUPTION FRAUD SOUTH AFRICA SIU SPECIAL TRIBUNAL EKURHULENI VOSLOORUS TAXI RANK PUBLIC FUNDS
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