By Johnathan Paoli
Three people have been arrested by the Directorate of Priority Crime Investigations (Hawks) in Mpumalanga over an alleged fraud and corruption scheme in which Govan Mbeki Local Municipality reportedly paid more than R1.5 million for goods and services that were never rendered or delivered.
Mpumalanga Hawks head Major-General Nico Gerber confirmed on Wednesday that the arrests form part of an investigation into alleged irregular procurement processes involving a service provider and two former municipal employees, with all three suspects expected to apply for bail.
“Public funds must be protected and utilised lawfully for the benefit of the communities they are intended to serve,” Gerber said.
He said the Hawks would continue pursuing allegations of fraud and corruption involving public institutions and ensuring that people entrusted with public resources were held accountable.
The suspects are 46-year-old service provider Brutus Hlophe, 48-year-old former municipal official Caiphus Ndimande and 65-year-old former municipal employee Henry Swart, who is now on pension.
Hlophe and Ndimande were arrested on Tuesday during an operation conducted by members of the Hawks’ Secunda Serious Commercial Crime Investigation unit.
Swart handed himself over to investigators on Wednesday and was subsequently arrested.
The case stems from allegations surrounding an invoice submitted by Hlophe’s company, J Mabhengu Construction and Transport (Pty) Ltd, to Govan Mbeki Local Municipality on 5 December 2022.
According to the Hawks, the company invoiced the municipality for goods and services that were allegedly never rendered or delivered. The municipality subsequently made payment of more than R1.5 million on 9 December 2022.
J Mabhengu Construction and Transport, represented by Hlophe as its director, has also been cited as an accused entity in the case.
The investigation found that the company had been appointed to the municipality’s panel of service providers in June 2021.
The appointment was subject to municipal Supply Chain Management (SCM) processes, including a requirement that quotations be requested from service providers on a rotational basis when services were required.
A Service Level Agreement was also supposed to be concluded between the municipality and the appointed service provider.
However, investigators allegedly established that the prescribed procurement processes were not followed in relation to the disputed transaction.
The accused face charges of fraud and corruption in terms of the Prevention and Combating of Corrupt Activities Act (PRECCA).
Hlophe and Ndimande appeared before the Evander Magistrates’ Court following their arrests, while Swart appeared before the same court after handing himself over to investigators.
The accused were remanded in custody pending a formal bail application on Thursday.
Gerber said the investigation is being conducted by the Secunda Serious Commercial Crime Investigation unit as the authorities continue probing the circumstances surrounding the municipal payment.
The arrests come amid continued efforts by law-enforcement agencies to investigate alleged corruption involving public funds and municipal procurement.
Gerber said the Hawks remained committed to pursuing cases involving alleged corruption and fraud within public institutions.
The Hawks’ investigation will now focus on the evidence supporting the alleged payment, the procurement process followed in appointing the service provider and the respective roles allegedly played by the suspects.
NC Ward 11 councillor candidate and Govan Mbeki Local Municipality speaker Fikile Magagamela welcomed the arrest of Ndimande and called for greater accountability within the municipality, while making several allegations against his political rival that have not been tested in court.
Magagamela alleged that Ndimande had been “collapsing the municipality” since he was employed by the local authority, and claimed he had previously faced questions over his qualifications and allegations of nepotism and the appointment of family members and business associates.
“He’s not exemplary to the community. And he is misleading the community. And he is exhausting the taxpayers’ money,” Magagamela said.
Magagamela also criticised the MK Party’s candidates in Govan Mbeki, describing the situation as “a total failure for the MK Party”.
She said that, if elected, he would ensure that municipal officials followed supply chain management processes and applicable financial regulations.
“Do they follow the SCM processes? Do they follow the regulations, the MFAs? If not, let everyone who has committed fraud be arrested,” Magagamela said.
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