A significant legal development has unfolded in Ekurhuleni, where the Special Tribunal recently dismissed a counterclaim in a high-profile fraud case that has both shocked and relieved local residents.

The case involves Kubwa Kazi Construction, Lebaka Construction, and their directors, who were implicated in a R1.9 million fraud tied to the Vosloorus Taxi Rank construction project.

The Fraud That Shook the Municipality

The fraud scandal centers around a R17.8 million contract awarded in 2014 to Kubwa Kazi Construction and its partners.

The Special Investigating Unit (SIU) uncovered strong evidence of fraud after the contractors submitted a fake invoice for nearly R2 million, falsely claiming payment for materials that were never delivered to the project.

The investigation revealed a disturbing network of deceit, with key individuals—Jacob Phungula, Veronica Z.

Mabena, and Joy M. Seale—allegedly collaborating to fabricate documents that siphoned money from the Ekurhuleni municipality.

Shockingly, some defendants even admitted their involvement in the fraudulent activities.

The Counterclaim and Tribunal’s Ruling

In response to the allegations, the accused parties filed a counterclaim, arguing that they were owed payment for an unrelated project by the Ekurhuleni Metropolitan Municipality.

However, in a crucial ruling on January 14, 2025, the Special Tribunal dismissed the counterclaim, asserting that it had no jurisdiction over the matter.

Not only did the tribunal reject the counterclaim, but it also ordered Kubwa Kazi Construction, Lebaka Construction, and their directors to pay for the legal costs incurred by both the SIU and the Ekurhuleni Metropolitan Municipality during the case.

SIU’s Thorough Investigation

The SIU’s investigation into the case was conducted under Proclamation R28 of 2018, which authorized a probe into allegations of fraud, maladministration, and unauthorized expenditure linked to public transport facility contracts in the Ekurhuleni area.

The Vosloorus Taxi Rank project was at the heart of this investigation.

With the power to refer criminal evidence to the National Prosecuting Authority (NPA) for prosecution, the SIU also has the authority to initiate civil actions to recover any funds lost due to fraud or corruption.

This investigation was crucial in uncovering the full extent of the fraudulent activities.

A Step Forward in Holding Contractors Accountable

The SIU has hailed the tribunal’s dismissal of the counterclaim as a major victory in its ongoing fight to protect public funds.

According to the unit, this ruling not only strengthens the case against the accused but also sends a clear message that attempts to obstruct justice will not be tolerated.

This case stands as a reminder of the importance of accountability in public procurement and the need for continued vigilance to prevent corruption.

The SIU’s efforts to pursue justice in this matter highlight the significant progress being made in holding both public officials and contractors accountable for fraudulent actions.

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

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