R12.5m fraud arrest ‘just a coverup’

AN ANC councillor in Mbizana municipality has come out in support of its director of planning and infrastructure who was arrested for fraud and corruption.

Councillor Justice Madikizela claims there was a plot to have Yetbarek Ayano arrested after he found that R6.4-million was transferred from the municipality’s bank account to someone else’s private account.

Madikizela said Ayano was about to conduct an investigation into the matter when he was suddenly arrested.

“I, councillor Justice Madikizela, know for a fact that Mr Ayano was trying to find out what had happened to funds that were in the municipality’s accounts but disappeared.

“We know the people who orchestrated his arrest might be behind the disappearance of those funds.

“We took him from the United Nations Development Programme and employed him at the municipality because we were impressed with the way he worked.

“He has done so much for us. We were shocked to learn that he was accused of stealing money – we know that he would never do that,” said Madikizela.

Ayano was arrested by the Hawks on Thursday afternoon. The following day he was taken to his office, handcuffed, and told to show Hawks investigators where his documents and computers were located.

He was later taken to his home in Margate, where more computers and cellphones were confiscated.

On Monday this week he appeared in court but was not asked to plead.

He was granted bail of R100000.

Meanwhile, Nathi Nkaule, the man who is listed on the register of companies as co-owner of Nat & Yet, the company that allegedly received R12.5- million from Cato Ridge, says his company was dormant and he had never opened a bank account in its name.

Cato Ridge was awarded a tender by Mbizana municipality to electrify five villages. It was paid R12.5-million and later transferred the money to the Nat & Yet account.

“I registered Nat & Yet as far back as 2007 when my contract at the UNDP ended, but I had never received a tax clearance or opened a bank account on behalf of the company.

“It has never operated and I thought Cipro had removed it off their database.

“The only company that I own that is working in Mbizana is Ukhanyo Infrastructure Managers and I am the sole owner of that company. My company is contracted by Cato Ridge.”

Nkaule said his company provided pre-marketing to Cato Ridge and this was the reason that the company was paid within nine days.

“As a consultant working for Cato Ridge I approached the company that had done the pre-marketing, I purchased the designs and did my own surveys first.

“I then took the designs to Eskom in Port Shepstone and they gave us the go- ahead,” added Nkaule.

Nkaule said he used to work with Ayano at the UNDP.

“He is like a father to us. He is a mentor to us emerging contractors,” he added.

Ayano will appear in court on July 29. —

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