Former TVET College CEO in court over R24m tender fraud

The Hawks arrested eight suspects in George in connection with the theft of funds from a TVET college. Photo: Hawks

The Hawks arrested eight suspects in George in connection with the theft of funds from a TVET college. Photo: Hawks

Published Apr 13, 2023

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Rustenburg – Former Southern Cape TVET College CEO and principal, his deputy, and business owners, facing charges of fraud amounting to R24.1 million, were granted bail at the George Magistrate's Court.

They were arrested on Wednesday and charged with corruption, 16 counts of fraud, alternatively theft.

The NPA said former CEO and principal Luvuyo Ngubelanga, his deputy Alisile Dyabaza, Prudence Dingiswayo, Patrick Mbebe, Sokhawulela Hire, and General Trading CC owned by Mbebe, Pieter Sam, Andreas Ngubeni, Inyameko Building Construction owned by Ngubeni, Nomathamsanqa Msizi, Tamaristos General Trading and Max n Mzo Projects both owned by Msizi, and Shadrack Njozela defrauded the college of R24.1m.

Ngubelanga was released on R10 000 bail, Dyabaza on R3 000, Dingiswayo on R2 000, Mbebe on R5 000, Sam on R5 000, Ngubeni on R5 000, Msizi on R3 000 and Njozela on R3 000, said the NPA spokesperson in the Western Cape, Eric Ntabazalila.

The State alleges that between 2010 and 2014 Ngubeni’s construction company, Inyameko Building Construction, was requested to submit 25 quotations for construction and related alterations across all South Cape College TVET Campuses.

The State charged that Ngubelanga, Dyabaza, Dingiswayo, Mbebe, and Sam, acting in common purpose, approved quotations submitted by the construction company, although there was no valid tax number, no construction industrial development board certificate, and no declarations form as supporting documents.

The State further alleges that the accused colluded using various forms of fraud and manipulation, to ensure that the 25 construction contracts were guaranteed for Inyameko Building Construction.

Methods used included a cover quote which was the manipulation of the “three quote system” whereby other companies owned by other accused and suspects, acting in concert with and common purpose, deliberately and conveniently under-quoted to ensure that the contracts were awarded to Inyameko Building Construction.

Cover quoting undermines procurement processes by corruptly eliminating competition, and by making artificially inflated prices appear competitive.

The State accuses Ngubelanga, and Dyabaza of pretending that the construction projects were urgent and approved them but failed to submit reasons for deviation to the institution’s council, as per Section 7.1.5 of the Procurement and Supply Chain Management.

They failed to state the reason why Inyameko Building Construction was appointed or regarded as the preferred supplier as per section 14 of the Procurement and Supply Chain Management.

The State further alleged that Ngubeni and his company knew that the total payments of over R24m by the institution were not acquired fairly, equitably and transparently, let alone (by) a competitive and cost-effective process ...

Their case was postponed to May 11 for their first appearance at the George Regional Court.

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