A 58-year-old company director and a 49-year-old financial advisor were arrested in Phalaborwa for allegedly defrauding the Small Enterprise Development and Finance Agency (SEDA) of over R800 000.
The arrests follow a months-long Hawks investigation into corruption, kickbacks, and money laundering involving SEDFA funding.
Provincial spokesperson Colonel Katlego Mogale said the Hawks uncovered “sinister activities which allegedly include theft, fraud, corruption and money laundering” at the Tzaneen office.
“The team ensured that a search and seizure warrant was applied for, duly authorised and executed on 24 April 2025, at SEDFA offices wherein electronic gadgets and documents were seized for further analysis while investigation continued,” she said.
The probe revealed collusion between an official and company directors, who allegedly manipulated funding applications in exchange for personal gain.
“The investigation revealed that an official was colluding with company directors in assisting with the applications and as result received kickbacks amounting to over R800 000 from those companies that eventually received funding from SEDFA,” she added.
On 17 March, the Hawks made a breakthrough with the arrest of the pair, who are expected to make their first appearance at Tzaneen Magistrate’s Court on March 19, facing charges of fraud, corruption, theft, and money laundering.
Meanwhile, Provincial Head of the Hawks in Limpopo, Major General Gopz Govender, warned public officials who misuse funds: “Serious Corruption Investigation will ensure you are brought to book. Regarding this case, the Hawks will leave no stone unturned and we’re not ruling out the possibility of more arrests.”
The Star
