Seven Face Court for Alleged R88 Million SAPS Tender Scam Involving Fraud and Money Laundering

On March 27, 2025, the Pretoria Magistrates' Court became the focal point of a significant legal proceeding involving seven individuals and three companies, accused of defrauding the South African Police Service (SAPS) of approximately R88 million. The seven accused, along with their associated companies, were formally charged and their case was postponed for a bail application set for the following day.

The accused include Matthew Pillay, the alleged mastermind, along with his mother Devi Sigamoney, his wife Lisa Pillay, and four of their employees: Bernard Mutimotema, Nithianathan Govender, Tinashe Moyo, and Betty Makinta. The companies involved are KJP Trades, Bohlale Traders, and Swift Warehousing.

The complex fraud scheme dates back to March 2012 when Matthew Pillay allegedly registered KJP Traders under his mother's name to comply with the Broad-Based Black Economic Empowerment Act and the Preferential Procurement Policy Framework Act, intended to facilitate inclusive economic growth and societal advancement.

In 2019, KJP Traders secured a tender to supply office furniture to various SAPS offices throughout South Africa, thanks to strategic misrepresentations and manipulations orchestrated by the accused. Pillay and his wife, along with the implicated employees, managed the fraudulent enterprise by establishing nonexistent local companies as supposed subcontractors to secure the tender, falsely boosting their B-BBEE status and local economic involvement.

Further deceit was revealed as these ghost companies, listed under false addresses across KwaZulu-Natal, Eastern Cape, Western Cape, and Gauteng, were used to undermine other bidders. They provided misleading VAT information and ownership details, projecting the image of a compliant and ideally structured enterprise.

This case illuminates the grave vulnerabilities in public procurement processes and the sophisticated methods employed by individuals intent on exploiting these systems. If convicted, the accused face serious consequences under the rigorous stipulations of the Prevention of Organized Crime Act, aimed at dismantling and punishing organized financial crimes like these.

The outcome of this ongoing legal battle will not only determine the future of the individuals involved but will also set a precedent for enforcement against tender fraud in South Africa, sending a stern message about the government's stance on corruption and the manipulation of systems meant to benefit the economically disadvantaged sectors of society.