Cape Town - Construction businessman Ridwaan Rajah, who was contracted for internal and external renovations to the parliamentary precinct, has been found guilty of fraud and perjury.
The Hawks said the 42-year-old director of Goodhope Plasters CC lied in an affidavit that the company had to pay a subcontractor in advance, forcing the Department of Public Works (DPW) to make additional payments.
Rajah and the company were convicted in the Bellville Specialised Commercial Crimes Court on Monday, on charges of theft of R519 037; and perjury in Rajah’s founding affidavit in support of his notice of motion proceedings to court.
According to the State, Rajah and Goodhope Plasters CC were awarded a R7.3 million tender by the Regional Bid Adjudication Committee (RBAC) of the DPW, to do the construction at the precinct at 120 Plein Street.
National Prosecuting Authority (NPA) spokesperson, Eric Ntabazalila, said for the company to execute the project, the department acquired the services of a professional consultant team comprising an architect who also acted as a principal-agent, a quantity surveyor, and an electrical engineer.
The final value of the contract amounted to R10.8 million.
“The DPW manager, the principal agent, and the quantity surveyor signed the final statement on February 13, 2014.
“Rajah, on behalf of his company, did not accept or sign the final statement.
“On September 23, 2015, he instituted motion proceedings in the High Court, Western Cape Division.
“In the motion proceedings, the Minister of the DPW was the first respondent and the architect (principal-agent) was the second respondent,” said Ntabazalila.
Rajah said in his founding affidavit that the final contract value of R10.8 million excluded an amount of R455 296.00, excluding VAT, an advance allegedly paid by Goodhope Plasters CC to a subcontractor, Winlite Aluminium, and Doors (Pty) Ltd for goods manufactured and kept off-site.
“He applied to the court to obtain a court order to compel the Minister of Public Works and principal agent to include the R455 296 (excluding VAT) in the final account as being due and payable to him and his company.
“The department paid R718 867 to the company.
“This included the advance payment amount of R455 296 (excluding VAT) or R519 037.90 (including VAT).
“Rajah further stated in his founding affidavit that the project was completed by him and that he has not been compensated for the advance made on behalf of the first respondent,” said Ntabazalila.
In October 2015 the Western Cape High Court compelled the DPW to amend the total cost amount, and make the additional payment of R455 296 so as to enable the company awarded the tender to pay the subcontractor.
Ntabazalila said the sole director of Winlite Ronald Edward Rayners denied his company received the R455 296 as an advance payment as alleged by Rajah.
Hawks spokesperson, Zinzi Hani, said investigations showed that the subcontractor indeed never received any payment.
“It was then that the DPW reported the matter to the Hawks for further probing.
“Through advanced investigation realised an element of misrepresentation,” she said.
Prosecutor Aurelia Genevieve Harmse argued that Rajah’s conduct was unlawful and intentional, and he caused harm to the interests of the public as “funds that came from the public purse were involved and stolen by the accused and his closed corporation”.
Rajah has been remanded in custody.
His case has been postponed to next month for sentencing proceedings.
In a Companies Intellectual Property Commission document seen by the Cape Times, the Goodhope Plasters CC with four directors, including Rajah and Raziek Rajah filed a notice to commence business rescue proceedings in 2021.
Raziek Rajah and the DPW did not respond to questions by deadline on Tuesday.
Cape Times