Three people have been arrested over allegations that Govan Mbeki Local Municipality paid more than R1.5 million for goods and services that were never delivered.
Hawks spokesperson Lieutenant Colonel Magonseni Nkosi said the suspects were arrested during separate operations by the Hawks’ Secunda Serious Commercial Crime Investigation team.
The suspects are 46-year-old service provider Brutus Hlophe, 48-year-old former municipal official Caiphus Ndimande and 65-year-old retired municipal employee Henry Swart.
Hlophe and Ndimande were arrested on Tuesday, while Swart handed himself over to the Hawks on Wednesday.
The investigation , which are conducted by the Hawks’ Secunda Serious Commercial Crime Investigation team, relate to an invoice allegedly submitted by the service provider to Govan Mbeki Local Municipality on 5 December 2022 for goods and services that were allegedly never rendered or delivered.
The municipality subsequently paid the invoice on 9 December 2022.
Nkosi said preliminary investigations established that the service provider had been appointed to the municipality’s panel of service providers in June 2021.
The appointment required quotations to be requested on a rotational basis when services were needed and in accordance with the municipality’s Supply Chain Management processes.
A Service Level Agreement was also required to be concluded between the municipality and the appointed service provider.
Investigators allegedly found that the required procurement procedures were not followed.
The company, J Mabhengu Construction and Transport (Pty) Ltd, represented by Hlophe as its director, has also been cited as an accused entity in the case.
Nkosi said arrest warrants were subsequently authorised for the three suspects, comprising the service provider and two former municipal officials.
The suspects and the company appeared before the Evander Magistrate’s Court on charges of fraud and corruption under the Prevention and Combating of Corrupt Activities Act.
Hlophe and Ndimande appeared in court on Tuesday, while Swart made his first appearance on Wednesday.
All three suspects were remanded in custody pending their formal bail applications.
Their next court appearance is scheduled for Thursday.
Mpumalanga Hawks provincial head Major General Nico Gerber said the unit would continue pursuing allegations of fraud and corruption involving public institutions.
“Public funds must be protected and utilised lawfully for the benefit of the communities they are intended to serve,” Gerber said.
