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Joburg rates fraud more than R10m

Jul 27 2012 09:29 Sapa

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Johannesburg - A probe into a rates scam allegedly operating in the City of Johannesburg indicated that fraud was higher than an initial estimate of R10m, according to a report on Friday.

The Business Day reported that Roslynn Greef, a member of a mayoral committee on urban management, said on Thursday that those responsible would face dismissal and arrest.

It was believed some city officials pocketed money paid in exchange for legitimate services, and issued landlords with fraudulent receipts. The receipts were, however, entered into the City's records as valid transactions.

While some landlords were unaware of the illicit nature of the transaction, it was believed others knew the money was not reaching the municipality.

Greef said the City had "moved backwards" but it was taking a zero-tolerance approach to resolve the problem.

The report also called for "mitigation measures... to avoid the recurrence of such an incident".

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landlords  |  fraud
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