Johannesburg – The case against former City of Cape Town employee Paul Mathew Hatting, who is charged with fraud, corruption, and money laundering, has been postponed so that he can consult with his lawyer following his first appearance.
Hatting appeared at the Bellville Commercial Crimes Court. The state alleges that Hattingh, who was a member of the Bid Evaluation Committee (BEC), hid his conflict of interest and recommended that a tender close to R50 million for supply and delivery of refuse black bags be awarded to C’Est Gyms.
According to the National Prosecuting Authority (NPA), in return, the company awarded the tender and paid R10.4m into the bank account of Hatting’s company, where he was the sole director and had signing powers.
The NPA says that it is alleged that Hatting, together with other persons unknown to the state, conspired, agreed, and decided to embark on an initiative to influence the tender process of refuse bags or the ordering of refuse bags by the City of Cape Town from C’Est Gyms and that C’Est Gyms will regularly pay money into his company’s bank account.
“C’Est Gyms was registered as a close corporation with Ms Shu Wei Lu and Ms. Irene September as members. September did not actively participate in the running of the company; Lu conducted the day-to-day operation of the business. The company was a registered service provider to the City of Cape Town on January 4, 2006,” says the NPA.
The NPA further said that members of the BEC recommended on September 16, 2008, that the tender for the supply and delivery of refuse bags be awarded for two years, from November 1, 2008, to October 31, 2010, to four companies, including C’Est Gyms CC.
“Hatting signed a conflict-of-interest declaration and undertaking of confidentiality, dated September 16, 2008, in his capacity as a member of the BEC, where he declared that he does not have any direct or indirect interest in respect of any of the tenders or bidders for the tender, or any financial interest (shares in companies, memberships in close corporations, partnerships, directorships, etc.) in the tenders or bidders for the tender,” says the NPA.
Hatting also declared that he does not have any immediate relatives or acquaintances (including spouse, partner, business or other associate, and/or close family member or friends) with a financial interest in the subject, any personal bias or inclination that would in any way affect his decisions about the subject, any personal obligation, allegiance, or loyalty that would in any way affect his decisions about the subject, or any personal social benefits or financial gain that may come about as a consequence of the award of a contract.
It was alleged by the NPA that Hatting benefited from these misrepresentations by more than R49m, to the actual or potential prejudice of the City of Cape Town and/or other tenders and/or the public.
He used his benefits for personal expenses, as there were, inter alia, 87 transactions to the value of over R800 000 under the name of PM Hattingh, 39 cash withdrawals to the value of over R2.2m, and payments made to Mercedes Benz and McCarthy Toyota.
“Funds were also transferred to companies he had a relationship with, such as six transactions to Cosmic Gold 532 to the value of R216 000, 19 transactions to Park Boulevard Traders to the value of over R2m, and five transactions to Ttanc Trading to the value of R224 000.
“This constituted money laundering,” the NPA says.
The case has been postponed to June 26, 2023, for him to consult with his lawyers.
The state has furnished the defence with further particulars and a copy of the docket.
The Star