Africa-Press – South-Africa. Four former senior employees at the ANC-run Alfred Nzo District Municipality are facing fraud charges after the municipality allegedly paid R38 million to a company for a tender to install water meters in 2012, even though the devices were already installed.
The Hawks on Wednesday arrested the four employees along with a local businessman for fraud and contravention of the Municipal Finance Management Act.
The suspects included the municipality’s former chief financial officer Luyolo Fokazi, 49, the former acting municipal manager, Xolani Masiza, 53, the former supply chain management assistant manager, Zuko Mani, 44, the former supply chain manager Paul Mahlasela, 47, and businessman and owner of Chumani Solutions, Xola Bomela, 53.
The five appeared in the Mthatha Specialised Commercial Crimes Court on Thursday, where they were each released on R10 000 bail.
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Hawks spokesperson, Captain Yolisa Mgolodela, said the case had been postponed to 9 May for further investigation.
The Hawks’ East London based Serious Corruption Investigation team arrested the suspects.
Mgolodela said Bomela’s company was subcontracted by the company awarded the R38 million tender back in 2012.
Bomela’s company allegedly ended up taking over the tender as the main contractor and received the money from the Alfred Nzo District Municipality.
Mgolodela said:
In August 2021, the municipality’s mayor, Sixolile Mehlomakhulu, was suspended after his office allegedly awarded a R65 000 bursary to his son, Yanga, to study a BSc degree at Wits University.
In March 2021, the National Treasury red-flagged the municipality for under-performance and non-compliance after it spent less than 40% of its 2020 budget.
National Treasury threatened to stop R384 million in funding due to under-performance and non-compliance relating to water service and municipal infrastructure.
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Communities in the poverty-stricken district had been suffering without access to clean water and sanitation.
In December, the cash-strapped Matatiele local municipality revealed Alfred Nzo District Municipality owed it an outstanding R13 million debt, sinking the municipality deeper into financial strife.
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