Investigation launched into Phoenix businessman for allegedly using counterfeit trading permit

A Phoenix businessman is alleged to have used a fake letter of approval from an eThekwini councillor to process his application for a permit to trade as an informal trader on Phoenix Highway in front of the Mahatma Gandhi Memorial Hospital. 

eThekwini Ward 48 councillor Michelle Lutchmen said she had observed that a structure that was built on the verge near the entrance to the hospital, where a businessman had set up to trade. She said she had contacted the local parks department to gather more details. 

Lutchmen said the matter was then brought up during an Operation Sukuma Sakhe ward war room meeting as a follow-up, where she was notified that the businessman was authorised to trade and claimed to have the necessary paperwork. 

“During further correspondence with the municipality, I was notified that my name and my official stamp were used on a letter that was submitted to their office. However, I did not recall approving this business to trade. When I had a look at the letter, I could see it was fake and that we do not issue letters in such a format,” Lutchmen said. 

Lutchmen said her name was also spelled incorrectly as Mitchel on the letter, which was dated October 2024. The letter was addressed to the Sustainable Development and City Enterprises Business Support Tourism market unit in KwaMashu.

The businessman stated in the letter that he wanted to sell herbs, which was a product that was not similar to those of other traders. In his motivation, he stated that this will sustain his income as well as put food on his table for his family. 

Lutchmen said she was concerned about fraudulent activities like this taking place in the municipality without being detected.

According to her, she has written to the eThekwini Municipality speaker's office to get more clarity on what consequences the businessman should face, adding that she is also contemplating laying criminal charges against him.  

eThekwini Municipality’s spokesperson, Gugu Sisilana, said if the approval letter is found to be fake, the trading permit will be revoked with immediate effect.

“We will also ensure that the person is disallowed from trading on municipal property. In most instances, we ensure that commendation letters are authentic by confirming with relevant ward councillors or their offices,” Sisilana said. 

The municipality encouraged people to report suspicious activities, including fraudulent letters purporting to be issued by ward councillors to the City Integrity and Investigations Unit (CIIU) or to any nearest law enforcement agencies.

zainul.dawood@inl.co.za