Eight members of a R2.3-million goat breeding scheme are facing charges of fraud over the misuse of project funds.
The project that was meant to bring sustainable development to the community of Boitumelong township in Bloemhof, North West, has collapsed.
The suspects, who were managing the Readira project funded by the department of social development in November 2009, are accused of mismanaging the funds by fraudulently obtaining reimbursements claimed to be paid out to service providers over the years.
The group also allegedly paid themselves an amount of R56000 in bonuses.
According to DA's member of provincial legislature, Dr Tutu Faleni, a vehicle valued at more than R200000 belonging to the project was written off after it was involved in a crash while driven by an unlicensed driver.
Faleni said an amount of R137000 was stolen from the project account. He said social development MEC Fenny Gaolaolwe reported to the North West legislature that an internal audit established that the amount used appropriately was over R1.5-million and an amount of almost R626000 was deemed to be irregular expenditure.
Faleni said the DA was disturbed that funds were withdrawn from the project's bank account without following correct financial procedures.
"The project shows what happens when government dumps money on community projects without putting in place mechanisms of regulating how such projects utilise funds allocated to them," he said.
Social development spokesman Petrus Siko said the case remains sub judice. "Let the law take its course," he said.
The eight accused are expected to appear in the Bloemhof Magistrate's Court on August 28.
tshehleb@sowetan.co.za
Eight charged for goat scheme fraud
Eight members of a R2.3-million goat breeding scheme are facing charges of fraud over the misuse of project funds.
The project that was meant to bring sustainable development to the community of Boitumelong township in Bloemhof, North West, has collapsed.
The suspects, who were managing the Readira project funded by the department of social development in November 2009, are accused of mismanaging the funds by fraudulently obtaining reimbursements claimed to be paid out to service providers over the years.
The group also allegedly paid themselves an amount of R56000 in bonuses.
According to DA's member of provincial legislature, Dr Tutu Faleni, a vehicle valued at more than R200000 belonging to the project was written off after it was involved in a crash while driven by an unlicensed driver.
Faleni said an amount of R137000 was stolen from the project account. He said social development MEC Fenny Gaolaolwe reported to the North West legislature that an internal audit established that the amount used appropriately was over R1.5-million and an amount of almost R626000 was deemed to be irregular expenditure.
Faleni said the DA was disturbed that funds were withdrawn from the project's bank account without following correct financial procedures.
"The project shows what happens when government dumps money on community projects without putting in place mechanisms of regulating how such projects utilise funds allocated to them," he said.
Social development spokesman Petrus Siko said the case remains sub judice. "Let the law take its course," he said.
The eight accused are expected to appear in the Bloemhof Magistrate's Court on August 28.
tshehleb@sowetan.co.za
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