Three suspects in court for allegedly defrauding KZN Education Department of more than R85 million

Raj Gopi, 59, Radharukmoney Gopi, 61, and Harichans Rampersad, 61, accused of fraud, money laundering and the contravention of the Income Tax Act, appeared in the Durban Specialised Commercial Crime Court on Tuesday. Picture: SAPS

Raj Gopi, 59, Radharukmoney Gopi, 61, and Harichans Rampersad, 61, accused of fraud, money laundering and the contravention of the Income Tax Act, appeared in the Durban Specialised Commercial Crime Court on Tuesday. Picture: SAPS

Published Jun 28, 2023

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Durban — The suspects have appeared in the Durban Specialised Commercial Crime Court for allegedly defrauding the KwaZulu-Natal Department of Education of more than R85 million.

Hawks KwaZulu-Natal Hawks spokesperson Lieutenant-Colonel Simphiwe Mhlongo said that on Tuesday, June 27, 2023, the three accused, Raj Gopi, 59, Radharukmoney Gopi, 61, and Harichans Rampersad, 61, were arrested by Hawks members from the Pietermaritzburg Serious Commercial Crime Unit Investigation for fraud, money laundering and the contravention of the Income Tax Act.

“It is alleged that the accused colluded and defrauded the Department of Education in KwaZulu-Natal through cover quoting. They allegedly created fictitious enterprises through which they engaged in cover quoting, as a result, legislated procurement processes were evaded in order to guarantee the award of various contracts to enterprises of the syndicate,” Mhlongo said.

“An amount of more than R85 million was paid by the department during the financial year 2012/2013 and 2016/2017.”

Mhlongo said that a fraud case was reported at Pietermaritzburg police station, and the case docket was allocated to the Hawks members for further investigation.

He said that through intensive and prosecution-guided investigation, the accused were arrested and charged accordingly.

“They briefly appeared in the Durban Specialised Commercial Crime Court and were remanded in custody. The case was postponed to July 10, 2023, and more arrests are expected,” Mhlongo said.

Meanwhile, in an unrelated incident, on May 30, Dr Sibongile Zungu, 60, a former KwaZulu-Natal Department of Health (head of department) and Sifiso Mtshali, 53, appeared briefly in the Durban Specialised Commercial Crimes Court on charges of fraud and contravention of the Public Finance Management Act.

It is alleged that in 2013, the KZN Department of Health awarded a 36-month lease to Mzansi Life-Care for the hiring of a mobile clinic. The contract was further extended without following the supply chain management process.

Then in 2016, the department awarded Mzansi Life-Care a contract for the outright purchase of four mobile clinics to the value of R32 million without following any supply chain management process. The vehicles were registered under Mzansi Life-Care instead of the department.

The roadworthy certificates were not obtained by the department, and the vehicles were parked off for three years. It is alleged that Mzansi Life-Care director Nandi Msimang fraudulently removed the four mobile clinics and sold them. As a result, the department suffered a loss of R32 million.

“A warrant of arrest has been issued for (Nandi) Msimang, and the Hawks are looking for her in connection with this case,” Mhlongo said.

“Anyone with information of her whereabouts is urged to contact Captain Pillay at 071 481 3789.

“Dr Zungu and Mtshali were released on warning, and the case was postponed to August 4, 2023,” Mhlongo added.

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