News Updates

Johannesburg Metro staff in R200m scam

Joburglogo-biznewsFrom the SA Press Asssociation:

Some of Johannesburg’s major shopping malls, hotels, real estate agencies and car dealers have allegedly been colluding to defraud the city of more than R200 million, The Saturday Star reported.

An investigation into council staff involved in fraudulent activities had led to the arrest of 18 people so far, the newspaper reported.

“The arrests relate to fraudulent activities such as manipulation of property valuation rates, tampering with meters and illegal connections of water and electricity,” council spokesman Nthatisi Modingoane was quoted as saying.

The probe had implicated several businesses in the city and high profile people, who could not be named.

A detailed report on the investigation into “a massive cartel involving big business” would be released in a month’s time, the city said.

On Thursday, co-operative governance minister Pravin Gordhan said the city had been defrauded in rates and taxes, and that city employees had allegedly been colluding with members of the public to avoid paying water and electricity bills.

This scheme, he said, had resulted in other customers getting inflated bills, as meters were being manipulated.

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  • Linda Horsfield

    I sent proof to the Mayor’s hotline several years ago, that the balances on accounts could be manually adjusted – and that a member of the VIP customer services department had offered to reduce the balance owing on a property I had bought via sheriff’s auction in exchange for R35 000.00.
    Not surprisingly – I still haven’t had the courtesy of a reply!
    I have accounts where :-
    Interest is charged on credit balances
    The amounts itemised on the account don’t balance to the total at the bottom
    Opening balances hugely inflated from the closing balance from the previous month.
    All of which are 100% proof that the billing system can be manually overwritten – but nobody at City of Joburg cares – either because its not their money – or because they are complicit in changing balances.