In a significant crackdown on corporate fraud, the Directorate for Priority Crime Investigation (the Hawks) has arrested five individuals and four companies on charges of fraud, theft, and money laundering. The arrests are the result of a coordinated investigation by Hawks units in the Eastern and Western Cape.
The case centres on allegations that a branch manager orchestrated a sophisticated scheme to defraud his employer, the Gqeberha-based construction company Pro Khaya.
According to the investigation, Pro Khaya sought to expand its operations to Cape Town between 2015 and 2018. The company appointed a qualified quantity surveyor as its branch manager. It is alleged that the manager abused his position by establishing a private company that offered services identical to those of Pro Khaya.
The Hawks’ meticulous probe revealed that the accused allegedly identified sub-contractors who colluded with him. Together, they facilitated the submission of fictitious invoices to Pro Khaya for payment. It is further alleged that after receiving payments from Pro Khaya, these sub-contractors would funnel the money back to the manager’s private company.
The elaborate scheme reportedly caused an estimated loss of R12 million to the parent company. Authorities have indicated that more arrests are imminent as the investigation continues.
The five suspects, aged between 37 and 59, are scheduled to make their first appearance at the Cape Town Magistrate’s Court on 27 January 2026. The four companies linked to the alleged crimes will also be formally charged.