Hawks Put Firm Director And Advisor In Handcuffs Over Alleged R800K Fraud Scheme

A 58-year-old company director, her business, and a 49-year-old financial advisor have been arrested in connection with an alleged corruption and fraud scheme exceeding R800,000. The arrests were carried out by the Directorate for Priority Crime Investigation—commonly known as the Hawks—during an operation in Phalaborwa on Tuesday, 17 March 2026.

According to Hawks spokesperson Katlego Mogale, investigators received intelligence pointing to suspicious dealings involving theft, fraud, corruption, and money laundering at the Small Enterprise Development and Finance Agency office in Tzaneen.

Search Operation Uncovers Evidence of Kickbacks Scheme

Mogale explained that authorities secured and executed a search-and-seizure warrant on 24 April 2025 at the SEDFA offices.

“The team ensured that a search-and-seizure warrant was applied for, duly authorised, and executed on 24 April 2025 at the SEDFA offices, where electronic gadgets and documents were seized for further analysis while the investigation continued,” Mogale explained.

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Further investigation allegedly revealed a coordinated scheme involving a SEDFA official and company directors. The official is believed to have assisted with funding applications in exchange for kickbacks.

“The investigation revealed that an official colluded with company directors to assist with funding applications and, in return, received kickbacks amounting to more than R800 000 from companies that were awarded funding.”

The accused are expected to appear before the Tzaneen Magistrate’s Court on Thursday, 19 March 2026, where they will face charges including fraud, corruption, theft, and money laundering.

Hawks Warn of More Arrests as Separate R500m Case Emerges

The Provincial Head of the Hawks in Limpopo, Gopz Govender, issued a stern warning following the arrests.

“Those entrusted with public funds but who squander them must know that Serious Corruption Investigation will ensure you are brought to book. The Hawks will leave no stone unturned, and further arrests are not being ruled out.”

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In a separate but equally serious case earlier this month, Zhang Ying Potgieter, a 51-year-old naturalised South African citizen, appeared in court facing 19,097 charges linked to alleged illicit cross-border money transfers worth around R500 million.

Potgieter was arrested on Wednesday, 4 March 2026, and made her first appearance at the Palm Ridge Magistrate’s Court the same day. She faces charges under the Exchange Control Act, 1961, read with the Currency and Exchanges Act 9 of 1933.

She was granted bail of R70,000 under strict conditions.