Hawks make sweeping arrests in Mpumalanga education fraud scandal
Hawks arrest 20 suspects in multi-province Mpumalanga Education Department fraud probe, targeting over R113 million. Officials and service providers face charges of theft, fraud, money laundering, and corruption.
Image: Henk Kruger / Independent Newspapers / File
The Directorate for Priority Crime Investigation (Hawks) have arrested 20 individuals as part of a nationwide operation targeting fraud and corruption in the Department of Education, the head of the Hawks in Mpumalanga, Major General Nico Gerber said.
Speaking during a media briefing on Sunday, Gerber explained that the arrests were part of a broader investigation that began in 2020 following reports of irregularities during the 2019/2020 financial year.
“We had an organised arrest across South Africa. We had arrests in Cape Town, Gauteng, Limpopo and the majority of the arrests obviously here in the Mpumalanga area,” he said.
The investigation centres on officials who allegedly manipulated emergency repairs and maintenance contracts for 21 schools.
Gerber said only a small portion of the repairs was actually completed, while pricing and tenders were highly inflated and service providers were handpicked, bypassing proper supply chain processes.
“Now, these contractors then worked with these officials. There were 17 service providers which have been identified and who will be arrested and will appear in court with the 10 officials,” Gerber said.
He added that the suspects include the acting Head of Department at the time, the Chief Directors for Implementation, the Director for Planning, and the acting Chief Financial Officer in the Department of Education, with some already in custody.
The suspects are expected to face charges including theft, fraud, money laundering, and contraventions of section 34 of the Prevention and Combating of Corrupt Activities Act (PRECA) as well as the Public Finance Management Act (PFMA).
“We will then have 40 physical persons that we will be arresting. At this stage, we're standing at 20,” Gerber said.
He revealed that the total amount involved in the scheme exceeds R114 million, which was allegedly channelled through an intricate network of money laundering involving government officials and their families. Funds intended for schools in rural areas were misappropriated, he said.
“That which was destined for schools in the rural areas was not directed as it should and that is why we're here today so that these people can account for the misappropriation of these funds and what they benefited out of their processes that they as officials were supposed to serve this country.
''One can just say it is organised fraud and organised corruption,” Gerber said.
Gerber emphasised that the investigation is ongoing and will continue until all suspects are arrested.
Gerber said the operation “will carry on the whole day and even tomorrow and even in the week,” adding that the Hawks “will not stop until all the suspects have been arrested and are in custody.”
He urged those who had not yet been apprehended to turn themselves in, explaining that authorities have their contact details and expect that some may come forward with their lawyers during the course of the week.
Gerber said the investigation has been complex, requiring detailed forensic audits of financial transactions.
“To prove a case like this is very intricate. We had to do a forensic investigation on the money flows,” he explained, noting that the suspects had spread funds across multiple bank accounts.
He added that obtaining all the necessary information often took time, as cooperation from government departments was not always forthcoming.
Gerber confirmed that those already arrested are undergoing administrative processes and will appear in court tomorrow to apply for bail under Schedule 5 provisions.
The suspects from Cape Town, Gauteng, and Limpopo are en route to Nelspruit to appear before the courts, he said.
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