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March 19, 2009
BEE front tyre deal fraudster fined R1m
A local businessman has been fined R1-million after he pleaded guilty to fraud and entered into a plea bargain with the State for setting up a BEE front company that won a controversial R40m tender to supply the City of Cape Town with tyres and tubes for its fleet of vehicles.
The Western Cape High Court set aside the tender awarded to tyre company Themba Tyres in September last year. A rival bidder, Erasmus Tyres, won an application to have the tender reallocated on the grounds that Themba was a front for Kilotreads in Paarl.
Posted by StaffWriter at March 19, 2009 7:29 AM