Court confirms restraining order of R165m against Amathole officials in sanitation project fraud case

The Makhanda high court has confirmed a restraining order totalling R165m in assets and money against Amathole district municipality officials and businesses facing a raft of charges over a R600m sanitation project.

Ntsokolo Chris Magwangqana, 64, Nkosinathi Rooseveld Soga, 62, Mpumelelo Vincent Shezi, 45, Lulama Taleni, 45, Ongama Mahlawe 55, Goodman Ntandazo Vimba, 46, Bongani Mpeluza, 50, Eddison Vuyani Gaga, 37, Hellen Busisiwe Kwinana-Boadi, 54, and Lovemore Khativhu, 41, face charges of fraud, corruption, money laundering, assisting another to benefit from proceeds of unlawful activities and contravention of the Municipal Finance Management Act (MFMA).  

“It is alleged that in 2013 Amathole embarked on a project, Accelerated Sanitation Programme, where 66,700 ventilated improved pit (VIP) toilets in various villages within the Amathole district municipality were to be erected,” Eastern Cape Hawks spokesperson Capt Yolisa Mgolodela said.

“An amount of R631m was allocated for the project and Siyenza Group was appointed to execute.

“After the payment of the first tranche, the National Treasury lodged a complaint that the company submitted two false tax certificates before the awarding of the tender.

“Investigations ensued and the money to the value of more than R149m was traced to a number of beneficiaries’ accounts besides the R16m house which was bought by the director of Siyenza Group using the funds acquired for the project.”

The money and the house were confiscated and a provisional restraint order was granted on December 2 2019 after their arrest on November 22 2019, followed by the confirmation of permanence last week.

The matter was postponed to September 20 as some of the accused lodged representations to the national director of public prosecutions.

The accused have been released on bail.

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