It is alleged that the accused colluded and defrauded the management by quoting the cover.
Hawks KZN spokesman Lt. Col. Simphiwe Mhlongo said they allegedly set up shell companies through which they participated in the cover quote, and evaded legislative buy-ins to ensure contracts were awarded to union companies.
Mhlongo said the management paid out more than R85 million during the 2012/13 and 2016/17 financial years.
“A case of fraud was reported at Pietermaritzburg Police Station and the case file was assigned to members of the Hawks for investigation. Through extensive and prosecution-oriented investigation, the accused were arrested and charged,” Mhlongo said.
The defendants were ordered to report to the nearest police station twice a week.
The case has been adjourned to November 10 for further investigation.