NEWS & ANALYSIS

Joburg official arrested for massive devaluation fraud

City to prosecute companies and individuals who colluded with valuer

Joburg official arrested for massive devaluation fraud

18 January 2017

Johannesburg - A former city property valuer was arrested on Wednesday for allegedly devaluing properties in the city by about R500m, Johannesburg Mayor Herman Mashaba said.

The candidate valuer’s alleged irregular and fraudulent adjustments to the values of 22 properties would result in the city losing around R40m in property taxes over the next five financial years, Mashaba said in a statement.

The city would prosecute the companies and individuals who allegedly colluded with the valuer.

“This money should have been used to provide basic and much-needed services such as water, electricity and refuse removal to the poor and most vulnerable residents of our city,” Mashaba said.

Carte Blanche aired a documentary in November in which several instances of alleged corruption within the City of Johannesburg’s property valuation system were revealed.

A deputy director in the city, who was referred to in the Carte Blanche documentary, was suspended pending disciplinary processes.

Mashaba claimed the previous ANC-led administration ignored a report that highlighted the alleged corruption.

Last week, News24 reported that Johannesburg’s new DA-led administration found over 1 000 instances of fraud in the city’s licensing department, and that up to 100 city officials could face arrest as a result.

This article first appeared on News24, see here.