Businessman convicted of defrauding Free State government department | News24

The Free State Hawks Serious Corruption Investigation team succeeded in convicting a Bloemfontein businessman of defrauding the Free State Department of Public Works. Photo: Hawks

A Bloemfontein-based businessman, Nicolas John Eyberg (55), was given a suspended sentence and fined after being accused of defrauding the Free State Department of Public Works of about R3 million. The Bloemfontein Magistrates’ Court convicted the suspect on June 19 based on the strength of the evidence presented in court.

Capt. Christopher Singo, provincial spokesman for the Hawks, said an investigation revealed Eyberg and his company, New Horizon Belegging, defrauded the department by submitting inflated and fraudulent invoices for the property the department had rented. Eyberg was convicted of breaching section 4 of the Prevention of Organized Crime Act 121 of 1998 (money laundering).

“The court sentenced Eyberg to ten years in prison, five years of which were entirely conditional, on the condition that he is not convicted of the same offense during the suspension period. He was also sentenced to a fine of R50,000, which he is expected to pay in monthly installments of R2,500,” Singo said.

Singo said the company had a lease agreement with the department for a building in Harrismith. He said the fraud came to light in 2015 and was reported to the Bloemfontein Hawks Serious Corruption Investigation team for further investigation.

“A senior official in the Free State Department of Public Works became suspicious of fraudulent payments to Eyberg’s company. Investigation revealed that the suspect and his company submitted inflated and fraudulent invoices for the property. These fraudulent payments concerned rates, water and electricity. It was discovered that the department would make payments to the suspect, and after he received the payments, he would transfer the money to his co-suspect. As a result of the fraudulent activities, the department was biased and suffered a total loss of more than R3 million,” Singo said.

Singo said that in sentencing Eyberg, the court took into account the fact that the suspect repaid R3?850 100.09, which was also lost by the department due to fraudulent payments. He said the other suspects involved in the fraud were still on trial.