A former African National Congress (ANC) Parliamentarian and six alleged accomplices are expected to appear in the Palm Ridge Specialised Commercial Crimes Court in eastern Johannesburg later today.
The suspects face charges including fraud and theft.
The suspects handed themselves over to the Hawks in Gauteng this morning.
The arrest of the seven suspects, including high-ranking officials, company directors and the former Member of Parliament (ANC), follows a forensic report by the Specialised Investigating Unit (SIU).
The report reveals that in October 2016, the Gauteng Department of Agriculture and Rural Development issued a tender requesting proposals to integrate and formalise waste operatives and waste into the mainstream waste management economy. The tender of around R27 million was then awarded to Enviro-Mobi in March 2017.
The contract agreement between the department and Enviro-Mobi stipulated that the department may consider paying on condition that 50% of the work has been completed and no upfront payments may be made to the service provider.
But during the investigation, it was found that over R25 million was paid to Enviro-Mobi for 200 motorised three-wheelers, though all goods were still in the possession of the service provider.
It is also alleged the company failed to disclose in its bid proposal, its affiliation to the politician who was a Member of Parliament.
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