A Mpumalanga couple faces theft charges after blowing R9-million erroneously paid into their business bank account by a municipality.
Dr JS Moroka local municipality spokeswoman Masabatha Ramatsetse said the couple's company had been contracted to provide construction services for a water reservoir project amounting to R1.6-million.
Instead, the municipality mistakenly paid them R10.6-million 10 months ago. "The municipality would like to state that the company was consulted after the erroneous payment was identified and they refused to pay back the overpaid amount," Ramatsetse said yesterday.
Ramatsetse said internal disciplinary processes were also already under way and the municipal employee responsible for approving the transaction had been suspended.
The couple, aged 51 and 48, however, lost two-thirds of the windfall on a deal that went sour which they hoped would bring them more money. The rest of the money was spent on vehicles, including a R629000 Jaguar.
The pair cannot be named as they have not yet pleaded on the charges they face.
They appeared in the Mdutjana Magistrate's Court in Siyabuswa on Monday for allegedly helping themselves to the extra R9-million that was mistakenly paid to them.
NPA spokeswoman Monica Nyuswa told Sowetan that the couple lost R7.5-million of the money in a failed investment. "The suspects bought a Jaguar worth R629000, [paid off] a Ford Ranger for R105000 and paid a subcontractor R553444."
Police sources confirmed that the money was "withdrawn completely" from the business account it had been deposited into in a short space of time.
The couple owns a construction company in Emalahleni which had both of them listed as directors, until the man resigned, according to company registration details. They are also listed as directors of other active companies.
Deed searches also showed that the man owns a Mpumalanga farm which was transferred into his name in December last year, a month after the R9-million payment was made.
Sowetan has also established that instead of reporting the error, the couple withdrew the money and went on a spending spree and settled their debts.
The case will be back in court next month.
Their case mirrors that of Sibongile Mani, the Walter Sisulu University student who also mistakenly received R14- million from the National Student Financial Aid Scheme and spent over R800000 in under three months.
Wits School of Law's Professor Stephen Tuson said: "The law is very simple on this matter. If you know it's [money] not yours, you use it or keep it, that's theft."
Tuson said the couple may have to try and prove "lack of intention" to steal and use the money. "It's very important to show the court that you're sorry. Showing remorse could be demonstrated by making arrangements to pay it back."
Couple blows R9m in 10 months
A Mpumalanga couple faces theft charges after blowing R9-million erroneously paid into their business bank account by a municipality.
Dr JS Moroka local municipality spokeswoman Masabatha Ramatsetse said the couple's company had been contracted to provide construction services for a water reservoir project amounting to R1.6-million.
Instead, the municipality mistakenly paid them R10.6-million 10 months ago. "The municipality would like to state that the company was consulted after the erroneous payment was identified and they refused to pay back the overpaid amount," Ramatsetse said yesterday.
Ramatsetse said internal disciplinary processes were also already under way and the municipal employee responsible for approving the transaction had been suspended.
The couple, aged 51 and 48, however, lost two-thirds of the windfall on a deal that went sour which they hoped would bring them more money. The rest of the money was spent on vehicles, including a R629000 Jaguar.
The pair cannot be named as they have not yet pleaded on the charges they face.
They appeared in the Mdutjana Magistrate's Court in Siyabuswa on Monday for allegedly helping themselves to the extra R9-million that was mistakenly paid to them.
NPA spokeswoman Monica Nyuswa told Sowetan that the couple lost R7.5-million of the money in a failed investment. "The suspects bought a Jaguar worth R629000, [paid off] a Ford Ranger for R105000 and paid a subcontractor R553444."
Police sources confirmed that the money was "withdrawn completely" from the business account it had been deposited into in a short space of time.
The couple owns a construction company in Emalahleni which had both of them listed as directors, until the man resigned, according to company registration details. They are also listed as directors of other active companies.
Deed searches also showed that the man owns a Mpumalanga farm which was transferred into his name in December last year, a month after the R9-million payment was made.
Sowetan has also established that instead of reporting the error, the couple withdrew the money and went on a spending spree and settled their debts.
The case will be back in court next month.
Their case mirrors that of Sibongile Mani, the Walter Sisulu University student who also mistakenly received R14- million from the National Student Financial Aid Scheme and spent over R800000 in under three months.
Wits School of Law's Professor Stephen Tuson said: "The law is very simple on this matter. If you know it's [money] not yours, you use it or keep it, that's theft."
Tuson said the couple may have to try and prove "lack of intention" to steal and use the money. "It's very important to show the court that you're sorry. Showing remorse could be demonstrated by making arrangements to pay it back."
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