The South African government has expressed its approval of the recent arrest of six directors from an engineering company who are implicated in fronting practices related to Black Economic Empowerment (BEE) and tender fraud amounting to R400 million involving Eskom and Sasol.
The Hawks, officially known as the Directorate of Priority Crimes Investigation, apprehended the suspects this week. They have been charged under the Broad-Based Black Economic Empowerment (B-BBEE) Act, along with charges of theft, fraud, and money laundering.
The allegations include misrepresentation to Eskom and Sasol by submitting false and fraudulent financial documents to win contracts for the supply of goods.
Nomonde Mnukwa, government spokesperson and acting director-general of the Government Communication Information System (GCIS), commented on the arrests, stating, “The government welcomes the Hawks’ actions against the six individuals allegedly involved in the fraudulent tender scheme at Eskom and Sasol, which dates back to 2017 and amounts to R400 million.”
Mnukwa emphasized that crime and corruption, regardless of scale, are significant barriers to the nation’s economic growth and development. She encouraged the public to report any corrupt activities by calling the National Anti-Corruption Hotline at 0800 701 701.
The questionable practices at the engineering firm came to light in September of the previous year when a former director, Baleseng Zinyana, took legal action against the company for refusing to provide her with the necessary accounting records for an audit. Another former director, Jack Madzivhandila, who was dismissed in 2019, also reported the firm to the B-BBEE Commission for its dubious practices.
The six accused individuals are scheduled to appear in court again on November 29.
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