Construction Fraud in Cape Town: Five Suspects and Four Companies Linked to R12 Million Scheme

• Five suspects and four companies were arrested in a multimillion-rand fraud and money-laundering scheme in Cape Town
• The construction company was allegedly defrauded of R12 million by insider collaboration with subcontractors
• The Hawks claim the subcontractors later transferred portions of the payments back to the suspect’s private company

Justin Williams, a journalist at Briefly News since 2024, covers South Africa’s current affairs. Before joining Briefly News, he served as a writer and chief editor at Right for Education Africa’s South African chapter.

WESTERN CAPE, CAPE TOWN - The Hawks have arrested five suspects and four companies in connection with an alleged multimillion-rand fraud, theft and money-laundering scheme operating across the Eastern and Western Cape.

Five suspects and four companies arrested

According to the Directorate for Priority Crime Investigation, the case centres on Pro Khaya, a Gqeberha-based construction company that expanded its operations to Cape Town between 2015 and 2018. Hawks spokesperson Lt-Col Avele Fumba said one of the suspects, a qualified quantity surveyor, was employed as the company’s Cape Town branch manager.

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According to IOL, investigators allege the suspect abused his position by establishing a private company that offered the same services as Pro Khaya. He allegedly worked with subcontractors who colluded with him to submit fraudulent invoices to the parent company.

The Hawks claim the subcontractors later transferred portions of the payments back to the suspect’s private company. The estimated loss to Pro Khaya is about R12 million. The five suspects, aged between 37 and 59, are expected to appear in the Cape Town Magistrate’s Court on Tuesday, 27 January 2026. The Hawks said further arrests are likely as the investigation continues.

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Source: Briefly News