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Hacker robs council of R3,2 million

By unknown | May 20, 2009 | COMMENTS [ 0 ]

Riot Hlatshwayo

Riot Hlatshwayo

The Thaba Chweu municipality in Lydenburg has confirmed that its main bank account was hacked into, resulting in the disappearance of R3,2million.

Officials at the municipality told Sowetan yesterday that the money had been transferred to at least 57 different bank accounts.

According to a municipality document dated April 30 a personal computer was used to transfer the money to the accounts, the owners of which remain a mystery.

"On April 9 the municipality closed its offices at 1pm and from the audit trail it was established that cash transfers amounting to R3,2million were made from the main municipal account to 57 different accounts held at FNB, Nedbank, Absa and Capitec bank after that.

"These are both private and business accounts," says the memorandum, which was signed by both executive mayor Clara Ndlovu and municipal manager Isaac Moshoadiba.

"An amount of R235000 was reversed from the bogus accounts," the memorandum says. "An amount of R900000 and other undisclosed amounts were frozen and the recovery of R2,1million is awaited."

The confirmation comes after angry members of the community called for the resignation of the mayor and the suspensions of the chief financial officer and the municipal manager over a lack of service delivery.

Superintendent Abie Khoabane yesterday confirmed that the police were investigating a case of fraud relating to the disappearance of the money.

The municipality was also in the news a few years ago when a councillor cost it R10000 when he used its phone to call a sex line.

The call girl company publicly demanded its money, forcing the council to pay up.


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