Pretoria – Nine suspects, linked to a multi-million rand scam that defrauded small businesses by posing as a government agency asking for the supply of goods, have been arrested.
The syndicate was arrested in a sting operation by the SAPS Directorate for Priority Crimes Investigation (Hawks) in a house in Sandton, on Tuesday.
The arrested suspects comprise of five men and women who are Ugandans, Malawian and a South African.
Their illegal operations cut across government departments including the Department of Water and Sanitation.
They placed a newspaper advert to supply the department with orange SC-90 Covers that are 300mm long and 300mm wide.
Although the advert carries the department’s letterhead, the telephone and fax numbers do not belong to the department and the person named for enquiries, NP Mthethwa, does not work for the department.
On closer scrutiny some of the telephone and cellphone numbers in the advert were found to belong to cars that had been installed with mobile phones. Physical addresses were normally fake or the culprits moved as soon as they had received full payment for the goods.
The department said that in the past year alone no fewer than 12 small business people had complained to the Department of Water and Sanitation after they were duped by the syndicate into parting with millions of rands.
“The syndicate opened fake bank accounts that would be closed as soon as their victims had deposited full amounts into the accounts,” the department said.
The department welcomed the arrests and appealed to business people who fell victim to the scam to co-operate with the investigators to ensure the conviction of the suspects.
They must contact the Hawks office on 011 870 5300.
The suspects are in custody until next week Thursday. – SAnews.gov.za
