R9, 8 million procurement fraud, theft and money laundering: O.R Tambo District Municipality: Sentenced #Sentencing EASTERN CAPE - Tobani Alex Notshokovu and his Company Zingce Trading Enterprise had pleaded guilty to all charges that he was facing for Procurement Fraud,
Theft and Money Laundering before the Mthatha High Court on Wednesday 12th February 2020.
He was sentenced to an effective 5 years direct imprisonment, or to pay a fine of R50 000-00 which was deferred for five months, and further sentenced for 5 years imprisonment, which is wholly suspended for a period of 5 years on condition that he is not again found guilty of fraud or any other offence involving an element of dishonesty committed during the period of
His Company was sentenced to pay a fine of R50 000-00, which was wholly suspended.
Two amounts were reflected to have been paid to a service provider in the name of Zanamanzi Projects for Services rendered.
The said Company confirmed payment of R2, 542, 497-31 which was electronically transferred into their bank account.
The second payment of the same amount was eventually deposited into a different account of the municipality employee.
As a result of the discovery of the fraudulent payment, full investigations were later conducted and a total amount of R9, 8 Million was identified to have been stolen in the same manner.
The investigations further linked various persons to the fraud which linked Thumeka Qongqo and Tobani Alex Notshokovu whose business accounts were used as conduit to launder the stolen money from the O.R Tambo District Municipality.
The investigations were completed during 2015 and on the 19 August 2015, accused persons were arrested and charged in the case.
They were released on bail and the case was eventually transferred to the Mthatha High Court.
The case is still pending with the Mthatha High Court and scheduled for trial on the 09 to 13 March 2020 in respect of other accused linked to the case.