A man who ran a business helping East London residents and firms to bypass their electricity meters has cost Buffalo City Metro R180-million in three years.
This is according to the Hawks, who yesterday arrested Gerrit Jan Crowther, 52, and charged him with fraud.
Crowther, arrested in Strand in the Western Cape on Thursday, appeared before the East London Magistrate’s Court yesterday where the case was postponed to June 29.
Hawks national spokesman Brigadier Hangwani Mulaudzi said Crowther was remanded in custody.
“The case was postponed to June 29 for Crowther to apply for a legal representative,” said Mulaudzi.
He added that over a period of three years, Crowther masqueraded as an employee of Eskom or BCM and claimed to render a service of installing a device which reduced electricity consumption.
“He marketed and sold his services to businesses in the Buffalo City area for amounts ranging from R3000 to R60000.”
Mulaudzi said: “However, it is alleged that Crowther did not actually install a device, but rather tampered with electricity meters.
“Consequently, the municipality lost approximately R180-million as a result of his actions.”
The scam was picked up in the BCM electricity department, where staff became suspicious when electricity bills began plummeting.
“BCM reported it to the Hawks as it noticed that the electricity bills of various businesses had dropped.
“The serious organised crime unit commenced with its investigation during November 2016,” Mulaudzi said.
BCM spokesman Samkelo Ngwenya said the metro had experienced serious losses due to theft and tampering with electricity supplies.
“We hope the arrest will serve as a warning to all those who are behind this, particularly organised businesses working against the city.
“This has serious revenue implications.”
Ngwenya said BCM’s revenue collection kept diving and he believed fraud was one of the reasons for the constant decline.
Ngwenya confirmed that the metro had reported the fraud and other similar scams taking place in large parts of the city.
Eskom Eastern Cape spokesman Zama Mpondwana congratulated the Hawks yesterday, adding that Eskom always encouraged citizens to be legal users of electricity.
“We further call upon customers to contact us if they are suspicious of any electricity-related activities,” Mpondwana said. —malibongwed@dispatch.co.za..