Municipality allegedly defrauded of millions by people using its details
A MAN has been arrested after the Sekhukhune district municipality in Limpopo was allegedly defrauded of millions by people using its details.
Executive mayor Mogobo Magabe said yesterday the council discovered there was a scam in terms of which people used the municipality's details to defraud companies.
Magabe said the "fraudsters" had ordered brake pads for Quantum minibuses at a garage in Nelspruit, Mpumalanga, valued at R308,000, using the council's physical address. The goods were delivered to a number in Groblersdal and not to municipal offices.
"We realised this when the company wanted payment. When we followed the matter up we discovered that these people had used a forged council letterhead," Magabe said.
"On further investigation we discovered that the same people had ordered laptops to the value of R1 million from I-Burst in Sandton, Johannesburg.
"Other companies were defrauded using the same modus operandi."
Lieutenant Colonel Mohale Ramatseba yesterday confirmed that they were investigating a fraud case.
He said that one person had already been arrested in connection with the crimes.
Letterheads used to make millions
Municipality allegedly defrauded of millions by people using its details
A MAN has been arrested after the Sekhukhune district municipality in Limpopo was allegedly defrauded of millions by people using its details.
Executive mayor Mogobo Magabe said yesterday the council discovered there was a scam in terms of which people used the municipality's details to defraud companies.
Magabe said the "fraudsters" had ordered brake pads for Quantum minibuses at a garage in Nelspruit, Mpumalanga, valued at R308,000, using the council's physical address. The goods were delivered to a number in Groblersdal and not to municipal offices.
"We realised this when the company wanted payment. When we followed the matter up we discovered that these people had used a forged council letterhead," Magabe said.
"On further investigation we discovered that the same people had ordered laptops to the value of R1 million from I-Burst in Sandton, Johannesburg.
"Other companies were defrauded using the same modus operandi."
Lieutenant Colonel Mohale Ramatseba yesterday confirmed that they were investigating a fraud case.
He said that one person had already been arrested in connection with the crimes.
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