EASTERN CAPE – The East London based Hawks’ Serious Corruption Investigation team arrested a 60-year-old former director of Human Settlement at Nelson Mandela Bay Metropolitan Municipality (NMBMM), 57-year-old city manager, 41-year-old businessman and his 36-year-old wife, 29-year-old regional secretary as well as three former councillors aged between 42 and 61 on 29 September 2022 respectively. The suspects were arrested on allegations of fraud, money laundering and contravention of the Municipal Finance Management Act (MFMA).
It is alleged that during April 2020, a complaint was lodged with the Hawks regarding irregular awarding of a tender for the construction of flushing toilets by the NMBMM.
It is further alleged that at the time, the municipality did not have funds or budget for the project. Funds are reported to have been taken from other cost centres through the influence of the former acting executive director for Human Settlement in NMBMM.
The toilets were meant for the destitute families in order to contain the spread of Covid-19 during lockdown.
A case of fraud was then investigated. Through analysis of bank accounts, a transaction of R400 000 was identified between the company that won the tender and another company that was not declared as a subcontractor. The funds were then transferred to another bank account linked to a private business person.
On following up on the funds, it was later established that a sum of R300 000 was paid to the regional secretary who in turn paid three former councillors as appreciation for casting votes of no confidence against one of their own, the then Mayor.
The investigation was finalised hence the arrest of the eight.
The suspects are expected to make their first court appearance on Friday 30 September 2022 in Gqeberha Specialised Commercial Crimes Court.
Source: South African Police Service