KEY POINTS
- Matthew Pillay and his family face charges in a R88 million ($4.8 million) SAPS tender fraud scheme.
- KJP Traders won a SAPS tender through fraudulent means.
- Authorities warn against engaging with unverified financial advisors.
Seven individuals, including a family, appeared in the Pretoria Magistrate’s Court on March 27, 2025, in connection with an R88 million ($4.8 million) SAPS tender fraud.
They face 330 charges, including fraud, money laundering, and violations of the Prevention of Organised Crime Act. The case was postponed until March 28 for formal bail applications.
The accused include Matthew Pillay, his mother Devi Sigamoney, his wife Lisa Pillay, and four of his employees: Bernard Mutimotema, Nithianathan Govender, Tinashe Moyo, and Betty Makinta.
Also named in the case are companies KJP Traders, Bohlale Traders, and Swift Warehousing.
According to the Investigating Directorate Against Corruption (IDAC), the fraudulent operation began in March 2012, when Pillay allegedly registered KJP Traders under his mother’s name without her knowledge to qualify under the Black Economic Empowerment (BEE) legislation.
This was part of a plan to exploit the Preferential Procurement Policy Framework Act and obtain state contracts meant for previously disadvantaged groups.
Fraudulent scheme involved fake gold trading and shell companies
The fraudulent scheme took a significant turn in 2019 when KJP Traders successfully bid for a SAPS tender to supply office furniture in several provinces, including KwaZulu-Natal, Eastern Cape, Western Cape, and Gauteng.
According to IOL, the company met all the false requirements, and the bid was awarded a three-year contract.
Further collusion occurred when companies linked to Pillay’s associates created shell companies. They did this to meet the 30 percent subcontracting requirement.
Authorities allege that the bid documents were falsified. They claim the documents misrepresented KJP Traders’ VAT status and ownership details.
Accused face multiple charges as investigation continues
The authorities accused the group of colluding to secure the contract through deceit, misrepresentation, and illegal actions.
They raised concerns about the legitimacy of financial documents used in the fraud.
Brigadier Paulus Mbongo, acting provincial head of the Hawks in the Free State, urged the public to verify the credentials of financial advisors and contractors.
He advised them to use entities licensed by the Financial Sector Conduct Authority to avoid such frauds.
The case has drawn attention to the importance of scrutinizing public contracts. This helps to avoid the misuse of public funds.
