Times Of Swaziland: E1.2M RECONSTRUCTION FUND FRAUD: COP ARRESTED

E1.2M RECONSTRUCTION FUND FRAUD: COP ARRESTED
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Mbongiseni Ndzimandze on 10/11/2023 07:46:00


MBABANE - The two businessmen from Bangladesh who stand accused of defrauding
the Reconstruction Fund have been arrested and co-charged with a police officer.
The police officer, Mthandi Pyscho Mhlungu, who is based in Manzini, was
arrested yesterday morning by his colleagues from the Commercial and Fraud Unit
in Mbabane. Mhlungu’s co-accused are Shadhat Hossain and Uzzal Mohammed.
Police are yet to arrest Refat Sakil, another businessman, who was allegedly
also part of the cabal that defrauded the fund.
The trio is facing six charges of fraud and the amount involved is E1 235
006.95. However, Mhlungu appears on two of the charges, while Hossain and
Mohammed are jointly facing the remaining four. The amount which is involved in
the two charges faced by the law enforcer is over E500 000.
Launched
The Reconstruction Fund was officially launched by His Majesty King Mswati III
in September 2021. When the King launched the fund, government injected E500
million. The fund was an intervention aimed at supporting businesses that were
affected during the civil unrest in June and July 2021. In the charge he is
facing alone, the police officer is alleged to have falsely and with intent to
defraud, misrepresented to the Reconstruction Fund, that he was a director of
Unfortified Wine and Malt, which was affected by the impasse during the civil
unrest in the country.
It is alleged that in order to claim the money from the fund, Mhlungu obtained
various quotations from suppliers, including one for the supply of equipment and
material from UB Investment (PTY) Limited, amounting to E286 722 and submitted
it to the Reconstruction Fund.
He is said to have, by means of the misrepresentation, induced the
Reconstruction Fund the sum of E286 722.
In the charge sheet, it is alleged that Mhlungu submitted the claim knowing very
well that he was not the owner of Unfortified Wine and Malt, that the quotation
submitted on behalf of Unfortified Wine and Malt were fraudulent and false and
that Unfortified Wine and Malt was not entitled to the amount of E286 722.
Modus operadi
He is alleged to have committed this offence on October 19, 2022.  It is further
alleged that on October 14, 2022, Mhlungu employed the same modus operadi to
purportedly defraud the Reconstruction Fund a sum of E331 217.49. In order to
receive the aforementioned amount from the fund, it is alleged that he obtained
various quotations from different suppliers, including Ruchi Wholesalers and
Masscash, amounting to E331 217.49.
Meanwhile, the duo of Hossain and Mohammed are accused of having falsely and
with intent to defraud the Reconstruction Fund, misrepresented to the fund that
they were directors of a business called Langwenya Supermarket, which was
affected by the impasse during the civil unrest in the country.   It is said
that in order to claim compensation, they obtained various quotations from a
number of suppliers, including one for the supply of equipment and material from
Elite Food Services, amounting to E169 797.16 to the Reconstruction Fund.
Prejudice
In the charge sheet, it is alleged that through the said misrepresentation, the
two ostensibly induced the fund to the loss and prejudice, to put into their
disposal the sum a quotation for the supply of equipment and material from Elite
Food Services, amounting to E169 797.16.  It alleged that when the accused
persons submitted the claim, they knew that they were not owners of Langwenya
Supermarket, the invoices submitted on behalf of Langwenya Supermarket were
fraudulent and false and that Langwenya Supermarket was not entitled to the
amount of E169 797.16.
They are alleged to have committed this offence on October 19, 2022. Acting
jointly in furtherance of a common purpose, the two Bangladesh businessmen are
further accused of having misrepresented to the Reconstruction Fund that they
were directors of Langwenya Supermarket, which was affected during the unrest in
the country.
In order to claim compensation, the accused persons are said to have obtained
different quotations from different suppliers, including one for the supply of
equipment and material from Cashbuild (PTY), amounting to E77 722.82 and
submitted it to the Reconstruction Fund.  On August 11, 2022, the accused person
are said to have again applied the same tricks to purportedly defraud the fund a
sum of E247 347.48.
This time around, they are alleged to have obtained various invoices for the
supply of equipment and material from N&F Investment. It alleged that using the
fraudulent invoices, they induced the fund the aforementioned amount.
When they submitted the claim to the fund, it is alleged that they did so
knowing that they were not owners of Fair Price Supermarket, that the invoice
submitted on behalf of Fair Price Supermarket was fraudulent and that Fair Price
Supermarket was not entitled to the amount of E274 347.48.