18 January, 2003

Press Release

Joburg hits a breakthrough in fraud- ultimatum issued to cheating customers

The City of Johannesburg this week issued a three-week ultimatum to all customers who have been involved in attempts to defraud the city in scams to write off arrears of municipal service accounts to come forward or face prosecutions.

This comes after the arrest this week of a woman suspected of posing as a council's Revenue Collection Service official who defrauded City customers large sums of money by promising them to write off their municipal service debts.

The woman was arrested with a record of all transactions she was involved in and customers who may had dealings with her are warned to come forward or they may be prosecuted as accomplices.

All city customers who may not be involved in this case but are aware of other corrupt activities inside or outside council are encouraged to contact council on its Anti-Fraud Hotline on 0800 002 587 to report corruption and save themselves money and possible prosecution.

Indications at this stage are that several other scams are operating within the city. The syndicates are thought to have defrauded a large number of customers of amounts ranging from R1000 to tens of thousands.

The South African Police Services arrested the woman thought to be in her late 30's on Monday after she attempted to defraud a city businessman of several thousands of rands with a promise to write off a debt running into millions owed to the city.

Council said the arrest was as a major breakthrough in riding the city of fraudulent scams. The city is confidant that whilst these scams are a national phenomena and largely well organised, the net is closing in on them. High-level investigations involving the City's Revenue Collection Service, its electricity utility City Power and the SAPS are on a trial of several groups and individuals.

The city warned residents not to conduct business with anybody outside the city, as the move was futile and will only earned more arrears. Council said it was aware that there are a number of customers who owe the city and want to do the right thing but are being misled by selfish fraudsters. It encouraged those who owe to approach the city as arrangements can be made for customers to settle their debts.

No council employee has any access or ability to write off debts or interfere with accounts in any manner. Where this happens, culprits are always apprehended as council systems have the ability to source a point of interference. In the past two years, 69 officials were suspended and some subsequently dismissed on suspicion of fraud involving shady journal entries.

ENDS.

For more information please contact:
Tasneem Carrim
Media Liaison
Tel: 407 7322
Fax: 403 3494
082 467 9227