The operation at The Construction Company, led by the Commercial Crimes Unit, also comes amid allegations of a lack of co-operation from the City's officials regarding the investigation.
He said the alleged fraud robbed poor residents of vital service delivery as the funds were meant for the upgrading of ailing infrastructure on the Cape Flats. However, Loonat claimed the initial project contract was worth R2m but 400 projects ranging from R500 000 to R2m were later issued. Loonat brought the alleged fraud to the attention of mayor Dan Plato who ordered an internal investigation.
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