MUNICIPAL OFFICIAL AND TWO DIRECTORS OF COMPANIES IN COURT FOR FRAUD
A municipal official and two directors of companies appeared in the Welkom Magistrates’ Court after they were charged for fraud, forgery and money laundering. Veronica Xamesi (46), Tubatsi Masia (46) and Thapelo Kgomo (49), together with two companies, Ukunda Professional Consultants and Kgotha Contractors (PTY) LTD, whose directors are Masia and Kgomo, respectively, are facing a total of 12 charges relating to a contract that was awarded to Kgotha Contractors to build a storm dam in Odendaalsrus.
On 31 May 2017, Matjhabeng Municipality awarded a contract of R13 million to Kgotha Contractors for a period of eight months, to build a dam that will direct water to another dam, to avoid flooding nearby houses when it is raining. Between 2017 and 2019 the municipality approved two variation orders to the amount of over R3 million to the initial contract, effectively increasing the contract value to more than R17 million.
Xamesi, who was a project manager, compiled three completion certificates to the value of R7.2 million, between 01 June and 03 August 2017 for services rendered, and submitted them for approval of payment by municipality to Kgotha Contractors. Masia, who was a director of Ukunda Professional, a company rendering consultancy services to the municipality, confirmed that the work has been done and the municipality can process the payments to Kgotha Contractors, whereas there was no work done. The municipality paid Kgotha Contractors, R7.2 million, at the advice of Xamesi and Masia, without any work being done.
The Auditor-General found out that R7.2 million had already been paid out for a dam that was never built and instructed the municipality not to make further payments.
Xamesi, Masia and Kgomo are out on bail of R15 000 each and the case was postponed to 31 August 2023 for disclosure of the docket.
