The six directors of NJM Heat Treatment & NDE Services (NJM), a Johannesburg-based engineering company, have been accused of BEE fronting, fraud, theft, and money laundering. The directors are Mark Douglas Smith (61), Alexander Elias Roditis (45), Vanessa Chungu (43), Raymond Crozier (62), Guy Phillip Le Roux (56), and Ronald James Hoy (58).
The South African Government has welcomed the arrest of these six individuals, who stand accused of BEE fronting and tender fraud involving R400 million at Eskom and Sasol. The arrests were made this week by the Hawks (formerly known as the Directorate of Priority Crimes Investigation).
The Hawks allege that NJM misrepresented itself by claiming to have a valid shareholder agreement, and they have charged the firm under the Broad-Based Black Economic Empowerment (B-BBEE) Act, along with theft, fraud, and money laundering.
Additionally, the accused are alleged to have submitted fraudulent and falsified financial records to both Eskom and Sasol to secure tenders for the supply of goods.
Government spokesperson Nomonde Mnukwa, who also serves as the acting director-general for the Government Communication Information System (GCIS), expressed satisfaction with the arrests.
“Government welcomes the Hawks’ arrest of six suspects for allegedly perpetrating a fraud scheme related to tenders at Eskom and Sasol in 2017, totaling R400 million. Crime and corruption, regardless of scale, are among the greatest challenges facing our country, hindering economic growth and development. If you see something, say something—report corruption by dialing the National Anti-Corruption Hotline at 0800 701 701,” stated Mnukwa.
The alleged misconduct at the engineering firm was reportedly brought to light in September last year by former director Baleseng Zinyana, who took the firm to court after it refused to provide access to the company’s accounting records for an audit. Another former director, Jack Madzivhandila, who was fired in 2019, reported the firm to the BBBEE Commission for alleged questionable practices.
The accused are expected to return to court on November 29.