KEY POINTS
- Family and associates face 330 charges for allegedly defrauding SAPS of R88 million through a falsified furniture tender.
- BEE policies were exploited by registering companies under false ownership to qualify for government contracts.
- Case postponed to Monday for bail hearings as investigators uncover deeper collusion in the tender process.
A family accused of defrauding the South African Police Service, SAPS, of R88 million through a fraudulent furniture tender appeared in the Pretoria Magistrate’s Court on Friday.
According to TheCitizen, the family members; Matthew Pillay, his wife Lisa, and his mother Devi Sigamoney face 330 charges including fraud, money laundering, and violations of the Prevention of Organised Crime Act.
The case, prosecuted by the Investigating Directorate Against Corruption (IDAC), was postponed to Monday for a formal bail application. “The court roll couldn’t accommodate us because of the cases that were already on schedule,” said IDAC spokesperson Henry Mamothame.
Also charged are Pillay’s cousin Nithianathan Govender, three employees—Bernard Mutimotema, Tinashe Moyo, and Betty Makinta—and three companies: KJP Trades, Bohlale Traders, and Swift Warehousing.
How the alleged fraud scheme worked
Investigators claim the family began the fraud in 2012 when Pillay registered KJP Traders under his mother’s name to exploit Black Economic Empowerment (BEE) policies. “The purpose was to comply with the Broad-Based Black Economic Empowerment Act by falsely presenting the company as women-owned,” Mamothame explained.
In 2019, KJP allegedly secured a SAPS tender to supply office furniture in four provinces. Authorities say the accused created fake subcontractors to meet the 30% local procurement requirement. “These companies had no assets and were registered under false addresses,” Mamothame stated.
The scheme allegedly involved misrepresenting VAT status, company ownership, and subcontractor details, ultimately securing an R88 million contract.
