A Bloemfontein businessman was convicted of corruption and fraud in the Bloemfontein Regional Court on Friday, 14 January.
The court found Ntapeleng David Serame (45) guilty of defrauding the Mangaung Metro Municipality and the South African Revenue Service (SARS) of millions.
The crimes were committed through five different entities that reportedly belong to him.
The conviction emanates from the investigation into crimes committed from 2007 to 2009.
According to findings, the bankrupt municipality was defrauded of R9 million through procurement services, while SARS was cheated out of more than R2 million through fraudulent income tax returns.
Capt. Christopher Singo, spokesperson for the Hawks in the Free State, said Serame was convicted of fraud, corruption, money laundering and the contravention of the Tax Administration Act.
Sentencing has been set for 11 April.
According to Singo, Serame defrauded the municipality through close corporation in the procurement of goods for the municipality. The municipality paid R9 million into the bank accounts of the convict’s entities, namely Iceberg Trading 542 cc, Snowline Trading 582 cc, Ka Rona Trading 536 cc, Seventh Avenue Trading 560 cc and Senthati Trading cc.
Despite the municipality’s payments, services were not rendered.
According to Singo, an investigation into Serame’s corruption and fraud was launched after a whistleblower and a SARS official reported the crimes to the Hawks’ Serious Commercial Crime Investigation Unit in Bloemfontein.
Upon conclusion of an in-depth investigation, Serame was served a summons on 26 June 2014.
Currently out on bail for R10 000, Serame has been appearing in court on a regular basis for the duration of his trial.
