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This morning, I was informed that the City paid R6-million for 500 desktop computers that were ordered by Group Information Communication Technology department in 2014 but they were never delivered.

GFIS received a tip off from a member of the public who is closely linked to the service provider that while she was working at the company the City placed an order for 500 desktop computers.  

The computers were paid for with the assistance of officials working for the City but never reached the City. 

The service provider who is based in the south of Johannesburg provides office stationery such as desktop computers, laptops, printer cartridges and toners just to name a few.  

A search and seizure operation was conducted yesterday by the members of the Hawks and officials from Group Forensic and Investigation Service (GFIS) at the offices of the service provider. 

About 37 computers worth R750 000 belonging to the City were seized during a joint operation.  It is alleged that after winning the tender to supply the computers, the service provider placed an order with Mustek to do the City’s imaging on the computers.  This was a standard procedure.  But with this batch it is alleged that when he received it from Mustek the service provider his specialists in the Information Technology field to remove the City’s imaging.  Serial numbers of the seized computers were removed.
It is alleged that most of the computers were sold to other clients and the 37 that was seized was used by the service provider’s staff members.  Preliminary investigations into the matter have revealed that a City official was paid R1-million by the service provider for securing the deal for them.  The City official allegedly took one official working for the service provider to a shop in the south which sells building material and spent R30 000 as a token of appreciation to the official.

I was also informed that the service provider colludes with one of our officials who steals printer cartridges from our stores and sells it to the service provider who then sells it back to the City. 

When the team arrived at the property they found one employee removing serial numbers from the boxes of the cartridges which had names of other municipalities and government departments.

The team also established that the service provider illegally connected electricity supply to the property.  City Power officials were called in and they removed the meter.

As you may be aware that GFIS is currently conducting a number of investigations into contracts entered with ICT suppliers. 

I want to eliminate corrupt elements throughout the City including investigating illicit deals and contracts that were secured by the previous the administration and this includes our technology space.

GFIS is committed to fight fraud and corruption, and maladministration in the City, those that are found to be involved in criminal activities will face the full might of the law.

I would like to thank all the law enforcement agencies including Hawks and JMPD who were involved in the operation.  I would also like to thank the engineers from City Power for the commitment in working with the team.

For Johannesburg to be a City of opportunity for all, the rule of law must be upheld. The days of criminals operating with impunity have to an end. 

I would also like to encourage people to report any fraud and corruption activities through our 24hour tipoff hotline 0800 002 587 or visit the GFIS offices situated at 48 Ameshoff Street in Braamfontein.

Cllr Herman Mashaba
Executive Mayor
City of Johannesburg

Media enquiries:

Lucky Sindane
Director: Strategic Stakeholder Management
Group Forensic and Investigation Services
Cell: 065 865 0696
Email: ​​