Hawks bust R12m construction scam in Cape Town, five suspects arrested

The Directorate for Priority Crime Investigation (Hawks) has arrested five suspects and four companies in connection with an alleged multimillion-rand fraud, theft and money-laundering scheme spanning the Eastern and Western Cape.

According to the Hawks, the investigation centres on Pro Khaya, a construction company based in Gqeberha, which sought to expand its operations to Cape Town between 2015 and 2018.

Hawks spokesperson Lieutenant Colonel Avele Fumba says the company employed one of the accused, a qualified quantity surveyor, as a branch manager in Cape Town.

“The accused allegedly abused his position by establishing his own private company that offered the same services as the parent company,” Fumba said.

Investigators allege the suspect then identified and worked with subcontractors who colluded with him to generate fake paperwork.

“Through meticulous investigation conducted by the Hawks, the accused strategically identified sub-contractors who colluded with him to facilitate fictitious invoices for payments to be paid by the parent company,” Fumba said.

The Hawks further allege that the subcontractors would then channel money back to the suspect’s private company.

“It was further alleged that the sub-contractors in turn would make payments back to his private company.” 

The estimated financial loss to Pro Khaya is about R12 million.

The five suspects, aged between 37 and 59, are expected to appear in the Cape Town Magistrate’s Court on Tuesday. The Hawks say further arrests are likely.

“More arrests are imminent,” the statement added.

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