UPDATE: Police raid 26 sites over alleged fraud involving R1.6bn municipal contract

The Police’s Commercial Crime Investigation unit announced on Wednesday that it had carried out a major search and seizure operation at nearly 30 addresses in Cape Town.

The operation, launched on Tuesday, 30 September, stems from a whistleblower tip-off and preliminary investigations.

Western Cape police spokesperson, Colonel Andre Traut, says targeted sites include businesses, municipal offices, the homes of municipal officials, and the premises of service providers and other entities that have been awarded municipal contracts.

“The [unit] is executing a large-scale search and seizure operation at 26 locations across Cape Town, following allegations of fraud and corruption involving municipal contracts valued at R1.6 billion,” said Traut.

Traut added that warrants were obtained to seize both documentary and electronic evidence, with the goal “to establish the full extent of alleged fraud and corruption”.

“The operation is aimed at securing crucial evidence to establish the scope of alleged irregularities,” said Traut.

Traut said the operation is being carried out in conjunction with detectives and external stakeholders.

At the same time, he, on behalf of SAPS, called on the public and stakeholders to avoid disrupting the investigation process by allowing detectives the “necessary space” to do their work.

“This coordinated effort underscores the commitment of law enforcement agencies to decisively address corruption and safeguard public resources.”

This comes after the Western Cape High Court ruled it unlawful that SAPS raided the offices of Cape Town’s Safety and Security chief, JP Smith, and his colleague, Mayoral Committee Member for Energy, Xanthea Limberg, in January.

Meanwhile, the City of Cape Town has lauded the search and seizure operation.

In a statement, the Metro confirmed the operation followed information obtained through preliminary investigations, which was supported by the City of Cape Town.

“In line with the City’s zero tolerance approach to fraud and corruption, City Forensic Services took swift action to assess and report the matter to SAPS, who then undertook a search and seizure operation. Operations took place at various addresses, including business premises, municipal buildings, and private residences.”

More details will be made available by SAPS as the investigation progresses.

*This article has been updated to include additional information.