In a story that has stirred both outrage and relief in Ekurhuleni, a high-profile fraud case involving construction companies Kubwa Kazi Construction, Lebaka Construction, and their directors has reached a critical juncture.

The Special Tribunal has dismissed a counterclaim brought by the accused in a R1.9 million fraud scandal, marking a significant step in the fight against corruption.

Fraud Uncovered in Vosloorus Taxi Rank Project

The case centers on the Vosloorus Taxi Rank construction project, which began in 2014 with a R17.8 million contract awarded to Kubwa Kazi Construction and its affiliates.

However, an investigation by the Special Investigating Unit (SIU) uncovered fraudulent activities.

The service providers allegedly submitted a fake invoice for R1.97 million, claiming payment for materials that were never delivered.

According to the SIU, the case involved a well-organized web of deceit.

Key defendants—Jacob Phungula, Veronica Z. Mabena, and Joy M. Seale—are accused of collaborating to prepare and submit false documents to siphon funds from the municipality.

Even more damning, some of the accused reportedly admitted to knowing about the fraudulent claims.

Counterclaim Dismissed

In an attempt to deflect attention, the accused filed a counterapplication, alleging that the Ekurhuleni Metropolitan Municipality owed them payment for an unrelated project.

However, the Special Tribunal dismissed this claim on January 14, 2025, citing its lack of jurisdiction over such matters.

Adding to the defendants’ woes, the Tribunal ordered Kubwa Kazi Construction, Lebaka Construction, and their directors to cover the legal costs incurred by both the SIU and the municipality.

SIU Investigation Details

The investigation was conducted under Proclamation R28 of 2018, which allowed the SIU to examine allegations of maladministration, unauthorized expenditures, and fraud related to public transport projects in Ekurhuleni.

Focusing on the Vosloorus Taxi Rank project, the SIU revealed its authority to refer evidence of criminal conduct to the National Prosecuting Authority (NPA) for prosecution.

The Unit is also empowered to initiate civil actions to recover public funds lost due to fraud or corruption.

A Victory for Accountability

The SIU considers the dismissal of the counterclaim a major win in its mission to protect public funds.

“The dismissal strengthens the case against the accused and sends a clear message that justice cannot be derailed,” the Unit stated.

This article was published on TDPel Media. Thanks for reading!

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