Seven Accused Appear in Court Over R88 Million Tender Fraud in the SAPS
27 MARCH 2025
Seven Accused Appear in Court Over R88 Million Tender Fraud in the SAPS
The Pretoria Magistrates’ Court postponed the case against seven accused and three of their companies to 28 March 2025 for formal bail application. They are facing 330 charges that include fraud and money laundering in Contravention of the Prevention of Organised Crime Act.
Matthew Pillay together with his mother Devi Sigamoney, his wife Lisa Pillay, his employees Bernard Mutimotema, Nithianathan Govender, Tinashe Moyo, Betty Makinta and three companies, KJP Trades, Bohlale Traders and Swift Warehousing, are facing charged relating to a tender fraud valued at approximately R88 million in the South African Police Service (SAPS).
It is alleged that in March 2012, Pillay registered KJP Traders under his mother’s directorship in her knowledge, when he was the actual owner of the company. The purpose for such action was for them to comply with the prescripts of the Broad-Based Black Economic Empowerment Act, and the Preferential Procurement Policy Framework Act (PPPFA) which promotes meaningful participation of black people, particularl women, people with disabilities, small enterprises and black designated groups.
In 2019, KJP Traders bid for a tender in the SAPS to provide office furniture in KwaZulu-Natal, Easten Cape, Western Cape and Gauteng, with Sigamoney meeting all the requirements as per the false registration of the company. The legal requirement for this tender was for the main contractor to sub-contract 30% to local companies. To this effect, Pillay and his wife colluded with employees of KJP to register companies, which in turn would be reflected as local beneficiaries from the main contract.
These companies which had no assets were registered under false addresses in all four provinces. A further collusion ensued when one of the companies which was registered under Makinta also bid for the main contract to disadvantage other bidders. In their bid, KJP Traders misrepresented their VAT status in their documents, misrepresented ownership of the company to gain advantage over other bidders by having an elderly woman as the sole director and also misrepresented information of the sub-contractors including their addresses. Through this collusion, the company was awarded a three-year contract valued at approximately R88 million by the SAPS.
Issued by:
Henry Mamothame
IDAC - Spokesperson
082 317 5731