The investigation into tender fraud in the City of Cape Town’s human settlements directorate took a decisive turn this week.
Story summary:
- Eight suspects, including key figures tied to the City of Cape Town’s housing sector, were arrested in connection with a tender fraud investigation.
- The arrests follow a protracted investigation by the Western Cape SAPS into fraudulent and corrupt activities linked to the City’s human settlements directorate.
- The suspects are facing charges related to racketeering, money laundering, extortion, and corruption.
City of Cape Town tender fraud investigation takes a turn
In a large-scale sting operation, eight suspects were arrested in connection with alleged corrupt activities.
This group includes individuals who have been tied to a wider network of fraudulent contracts, including dealings with the notorious construction mafia.
In a statement issued by the Western Cape SAPS on Tuesday, the department confirmed that four of the suspects were apprehended in Johannesburg, while the others were arrested in Cape Town and the Eastern Cape.
These arrests come months after SAPS investigators seized critical documents and equipment from the City’s offices during raids in March 2023.
The suspects are expected to appear in the Cape Town Magistrate’s Court on Wednesday, where they will face charges of racketeering, corruption, extortion, and money laundering.
Western Cape SAPS spokesperson Colonel Andrè Traut described the arrests as a “significant milestone in an ongoing investigation” that could see more individuals linked to the fraud scheme brought to justice.
Earlier this year, the Weekend Argus reported on a high-ranking City of Cape Town official, Sipokazi September, who was dismissed after being found guilty of colluding with underworld figures.
This dismissal followed allegations of corruption and fraudulent tender activities connected to public housing contracts.
According to the investigation, September was linked to the so-called construction mafia and had been involved in manipulating contracts and rigging tenders to benefit herself and criminal syndicates.
Several other officials have since been suspended, as the probe into the City’s housing department continues.
“The City has taken decisive action against those found guilty of misconduct, and we remain committed to rooting out corruption,” said City spokesperson Luthando Tyhalibongo at the time.
This is not the first time that the City of Cape Town has been embroiled in tender fraud scandals.
In October 2023, Swisher Post covered a similar case involving City of Cape Town officials.
In that instance, two officials were arrested for scamming over 11 buyers in a housing development project in Mfuleni.
The scheme defrauded victims of R900,000, after they paid for plots that were never delivered.
