CITY OF EKURHULENI WARNS SERVICE PROVIDERS OF FRAUDULENT ‘PAY-TO-GET-PAID’ SCAM
The City of Ekurhuleni has today issued an urgent warning to all its service providers and the public about a sophisticated payment scam designed to defraud them. The City has intercepted fraudulent activity where criminals are using forged letterheads of political offices to solicit money from unsuspecting suppliers.
The scam involves fraudsters creating fake payment agreement letters, such as a fraudulent document recently uncovered which was addressed to a service provider. These convincing forgeries are created on what appears to be an official letterhead from the Office of the MMC for Finance.
The fraudulent letters promise a significant payment for services rendered, such as one instance promising R 750 000.00 for providing sound systems and tents. Scammers then contact the service provider and demand a fee to have this “outstanding payment” processed and expedited.
“This is a criminal act, and we condemn it in the strongest possible terms,” said the MMC for Finance, Ald. Jongizizwe Dlabathi. “The City of Ekurhuleni will never ask a service provider to pay a sum of money to have their legitimate invoice processed. Our payment protocols are clear and do not involve any such fees. We are working with law enforcement to track down the perpetrators of this crime, and they will face the full might of the law.”
How to Protect Yourself
The City of Ekurhuleni urges all service providers to exercise extreme caution. The fraudulent documents are designed to look authentic and may include:
– The City of Ekurhuleni’s official logo and address.
– A specific amount owed to the supplier.
– A clause stating payment will be made within 30 days.
– Forged signatures of City officials, such as a recent forgery using the name of the PA to the MMC for Finance.
What To Do If You Are Targeted
1. DO NOT PAY: Never pay money to any individual claiming they can expedite a payment from the City.
2. VERIFY: If you receive a suspicious letter, email, or phone call, do not use the contact details provided on the document. Instead, contact the City’s official departments directly through the numbers listed on the official City of Ekurhuleni website.
3. REPORT: Report any suspected fraudulent activity immediately to the City’s Anti-Fraud Hotline.
The City remains committed to upholding the highest standards of integrity and transparency. We value our relationship with our service providers and are taking active measures to safeguard them from such criminal activities.
