MBABANE – An investigation has uncovered a highly organised criminal group operating from within – or with the assistance of individuals linked to – the Ministry of Public Works and Transport.
The group is allegedly defrauding South African businesspeople by promising them access to lucrative road construction tenders that, in reality, do not exist. This follow-up investigation is a continuation of our earlier report, which first lifted the lid on the scheme.
Since that publication, information gathered by this newspaper indicates that several South African businesspeople came forward, reporting that they too had been lured into the same trap after believing the tender opportunities were legitimate.
The actual amount stolen from the entrepreneurs is not yet conclusive, according to the Royal Eswatini Police Service (REPS).
According to evidence gathered by this newspaper, the criminal group’s method of operation (modus operandi) begins with identifying foreign businesspeople, particularly South Africans, and approaching them with claims that Eswatini urgently requires contractors to build more than 20 roads because the country allegedly does not have enough local companies to handle the demand.
The fraudsters reportedly tell their targets that the road projects are donor-funded and that foreign companies can only qualify if they register locally, pre-design the roads, and pay various facilitation and engineering fees.
This newspaper has established that every step of the scheme is presented in a manner that resembles genuine government procurement.
One of the people conned by the group, a South African businessman, lost over E1 million. He detailed to this newspaper how he was drawn into the elaborate fraud in August 2022.
The South African national, based in Durban, KwaZulu-Natal Province, said he was first introduced to the scheme by his fellow countryman, who is also a businessman.
The name of the purported middleman is known to this newspaper, but cannot be revealed for now, as no charge has been levelled against him by the police.
He supposed that the middleman, whom he trusted and who appeared to know the alleged officials well, informed him about the major road construction opportunities in Eswatini.
In his narration, he claimed that his fellow countryman insisted that certain ministries were urgently seeking capable contractors from outside the country.
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Minister denies boardroom fraud knowledge
MBABANE – The Ministry of Public Works and Transport is clueless about the fraud happening in its boardroom.
Minister for Public Works and Transport Chief Ndlaluhlaza Ndwandwe said they were not aware of any of these alleged fraudulent tendencies. “We would want to encourage any member of the public who is defrauded in the precinct of our offices to report to the police to investigate the fraud and also that we may take note of possible security weak points,” Ndwandwe said. The minister said members of the public are also encouraged to engage with the rightful people on such issues. These officers, he said, include the principal secretary (PS), undersecretary (US) and the rest of the head of departments (HODs). He was responding to a questionnaire which sought for comment on the investigation by this newspaper regarding a sophisticated tender fraud scheme reportedly operated by employees of the Ministry of Public Works and Transport, who have been defrauding South African businesspeople by promising them access to non-existent, donor-funded road construction tenders.
He was asked:
- Are you aware that employees of your ministry have been operating a fraudulent tender scheme targeting South African businesses?
- One of the victims has formally reported the matter to the Royal Eswatini Police Service, submitting extensive evidence tracing the scam directly to ministry employees. Has your office received communication from the police regarding this report and what steps have you taken upon receiving this information?
- Victims were taken into a ministry boardroom for presentations that were staged by these employees to give legitimacy to the scam. Can you confirm how ministry employees gained authorisation to use official boardrooms and offices for fraudulent activities?
- Evidence shows that ministry employees issued fake invoices, demanded payments for design and registration fees and conducted road ‘site visits’. Is the ministry conducting an internal audit to determine how these fraudulent documents were produced and circulated from within your institution?
- Some of your employees are reported to be falsely presenting themselves as senior officials, including one claiming to be ‘Chairman Simelane’, despite the ministry not having such a board structure. Has the ministry identified these employees and what disciplinary action is being taken?
- Ministry employees also escorted victims to legitimate government institutions – including the Eswatini Contractors Association and the Trading Licence Department – as part of the deception. Was the ministry aware that its employees were using government infrastructure and networks to perpetrate fraud?
- Investigation has revealed that access to ministry facilities, such as the boardroom, could only have been made possible because the perpetrators are employees with authorised access. What security and access-control measures does the ministry have in place to prevent employees from misusing official premises for criminal activity?
- Several South African companies, including one based in Mossel Bay, have reported being defrauded by the same employees. What immediate measures is the ministry taking to prevent further exploitation of foreign contractors by its staff?
- Given the seriousness of the misconduct, is the ministry preparing to suspend or remove implicated employees while investigations continue?
- What assurances can the ministry give to the public, the construction industry, donor partners and foreign investors about the integrity of procurement processes under your leadership?
On the other hand, Deputy Chief Police Information and Communications Officer Assistant Superintendent Nosipho Mnguni said the previously reported matter was still under investigations and an arrest was yet to be made.
*Full article available in our publication
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