Lekwa Local Municipality has opened a criminal case against one of its own employees following the discovery of a sophisticated fraud scheme that allegedly diverted more than R1.4 million in municipal payments into personal bank accounts.
According to Acting Municipal Manager Mr Mthembeni Jiyane, the suspended Senior Creditors Clerk is facing serious allegations, including fraud, forgery, uttering and theft. The criminal case was officially registered at the Standerton Police Station.
Attempted R97 601 theft sparks wider investigation
The matter came to light when the Municipality’s Finance Division detected an attempted diversion of R97 601, a payment intended for an approved municipal service provider. It is alleged that the employee had substituted the legitimate beneficiary’s banking details with her own, prompting immediate action.
Mr Jiyane ordered the employee’s precautionary suspension and revoked her access to the municipal banking system. He further instructed an urgent internal investigation, alongside a full audit of transactions processed by the staff member over the past three years.
Audit uncovers R1.467 million in fraudulent payments
The Municipality’s Internal Audit Division uncovered a far larger pattern of fraud. Investigators found that the employee used three personal bank accounts to divert payments meant for two service providers. The total amount unlawfully channelled to her accounts came to R1 467 031.22.
Audit findings show that the employee used the same method repeatedly: altering the banking details of legitimate suppliers in the system and replacing them with her own at the point of processing payments.
Firm stance on ethics and accountability
Lekwa Local Municipality emphasised its unwavering commitment to ethical governance and clean administration. The institution’s Fraud Prevention Policy, together with continuous ethics, anti-fraud and anti-corruption training provided through the Office of the Premier, underscores its zero-tolerance stance.
“The Municipality remains committed to ensuring clean, accountable and transparent administration,” the statement said. “We will continue to act decisively against any form of fraud, corruption or maladministration.”
The criminal investigation is now in the hands of law enforcement, while internal processes continue.
