Municipality foils R6,5m scam
QUICK thinking by the leadership of the Amajuba district municipality has helped save taxpayers R6,5million that was claimed fraudulent by a syndicate using bogus invoices.
The con artists, whom police are still trying to track down, phoned the municipality's finance department, posing as employees of uThukela Water.
Mayor Mkhulu Mlangeni said the crooks submitted documents to change accounts for uThukela Water.
Senior officials in the municipality approved the documents instructing junior staff to process and deposit more than R6,5million in that account.
"It turned out the officials were tricked by fraudsters posing as employees of uThukela water," Mlangeni said.
The uThukela Water is a service provider to the uThukela, Amajuba and Umzinyathi municipalities.
The fraudsters kept on pestering the officials.
Mlangeni said the officials realised they were being tricked when they noticed logos on the invoice had been tampered with.
"More than four payments were processed without verification, which I believe our officials did not even notice," he said.
"They only realised this when uThukela Water phoned demanding payments."
Police spokesperson Thulani Zwane said a case of fraud was opened by the municipality and arrests were imminent.
Idohl
That is exactly what you are being paid to do, to do your work. It is a good thing to know that at least there are still officials out there who are competent. Big up guys. Well done!Report Abuse
opzen
Senior officials in the municipality approved the documents instructing junior staff to process and deposit more than R6,5million in that accountsome1 senior must be involve investigation must be done internally.
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CheeseBoy
yepsmells like an inside job to me. how did they know what type of information to put in the invoice?
the article says its the Logo that gave the game away so I take it the rest of the info was corresponding with was was being invoiced.
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CheeseBoy
In any case that was a job well done by that quick thing employee. more people of this nature and sharp wit are needed in govt.Report Abuse
Deedy
Tjo! I smell a rat, definitely this is an inside job. Someone is gon' get caught, watch this space...Report Abuse