Johannesburg council uncovers R21m law firm scam

The City of Johannesburg has thwarted a scam that could have cost it more than R21-million.

The scam involves council revenue officials allegedly in cahoots with law firms employed by the city.

Law firms have issued irregular invoices and claimed undue payments and commission, according to a confidential report.

Investigations were carried out by the Johannesburg council's risk and audit services but no official has been charged as yet .

According to the report, presented at a recent meeting of the municipal public accounts committee, two of the firms in question were due to receive R10.1-million and R10-million in "alleged irregular payments" and "alleged over-payment of commission".

A third firm was in line to receive R615468.04 as a result of "alleged irregular invoicing".

Last month, the city uncovered a racket in which businesses were found to have bypassed the city's electricity-supply network and tampered with meters.

The city said the criminal activity cost it about R200-million.

Council employees were discovered to be at the centre of the racket.

Eighteen employees have been arrested.