Company fined R200 000 for fraud and corruption

Pengson Manufacturing Company operating as Crystal Enterprise was fined R200 000 by the Giyani Specialised Commercial Crimes Court on Friday for fraud and corruption. 

This follows a long race of major investigations into the allegations of tender corruption worth over R18 million at Kutama Sinthumule Correctional Facility.

ALSO READ: Search for missing person

The Investigation started in 2018 when the Hawks’ Serious Corruption Investigation received a complaint of tender irregularities at the facility.

Eight accused persons including two deputy directors from the facility. Directors and their companies were arrested during a sting operation in December 2018.

FRAUD AND CORRUPTION LEAD TO A FINE FOR A LOCAL COMPANY 

The company, Pengson Manufacturing represented by its director Stanley Pengson was previously ordered to pay back R1 million. The decision was by the same court on 18 August 2021. They were found guilty on 24 counts of fraud and 2 counts of corruption.

It was further written off and will be deregistered from CIPC. The other convicted accused persons are yet to be sentenced.