An Eastern Cape senior government official, her daughter, and six relatives, including her domestic worker, appeared at the East London Magistrate’s Court on Monday, September 23, on charges of fraud and corruption relating to fraudulent land claims compensation in the province.
Funeka Malusi (56), a senior manager at the East London-based Department of Rural Development and Land Affairs, her daughter, Chulumanco Malusi (25), and five relatives, including a domestic worker, appeared in court for a formal bail application.
Other accused include Zoliswa Manditsa (47), Zoleka Mbinambina (55), Avukile Gxalo (54), Nokuthemba Hope Malgas (45), and Luvuyo Vika (54).
Funeka was released on R30,000 bail, while the six other accused were granted bail of R10,000 each, and the case was postponed until November 7 for further investigation. Five of the accused, including Funeka, are represented by Henry van Breda of Changfoot van Breda Attorneys in East London.
It is alleged that the Department of Rural Development and Land Reform made compensation payments of about R13 million through this fraudulent land claims scheme allegedly orchestrated by Funeka and her relatives.
They were arrested by the East London Hawks’ serious corruption investigating unit in various locations across the province over the weekend. Vika was arrested in the Northern Cape.
It is alleged that between 2017 and 2024, Funeka colluded with her daughter and relatives by approving a self-orchestrated fraudulent land claim whereby she unlawfully submitted fraudulent land claims to the department.
As a senior manager, she personally approved the submitted land claims compensation herself.
Eastern Cape Hawks’ spokesperson, Warrant Officer Ndiphiwe Mhlakuvana, said the Hawks’ investigation revealed that she amended the list and substituted details of the land claims beneficiaries with those of her relatives, including her domestic worker.
It is alleged that none of the lawful beneficiaries of land claims received payments, but her relatives unduly received payments through fraudulent claims.
Mhlakuvana said the Hawks’ investigation disclosed that Funeka intentionally and unlawfully edited the land claims documents by altering the banking details of the lawful beneficiaries to the bank accounts of her relatives and the domestic worker.
“Further investigations indicated that several payments were made to the relatives rather than the lawful beneficiaries, thus prejudicing the Department of Land Affairs a cash amount of over R10 million during that period,” said Mhlakuvana.
Provincial Head of the Hawks, Major General Obed Ngwenya, praised his investigating team for successfully arresting all suspects.
“The Hawks will continue investigating and arresting all corrupt government officials without fear or favor, and we appeal to members of the public to report corruption,” added Ngwenya.
