Former Alfred Ndzo District Municipality chief financial officer (CFO), Luyolo Fokazi (49), former acting municipal manager, Xolani Masiza, former supply chain head, Paul Mahlasela, and former assistant supply chain manager, Zuko Mani, made a brief appearance before the Mthatha Magistrate’s Court on March 24, following their arrest by the Directorate for Priority Crimes Investigation’s (Hawks’) serious corruption investigation team.
The four former Alfred Ndzo District Municipality were arrested, together with businessman and director of Chumani Solutions, Xola Bomela.
Their court appearance followed their formal arrest at the Mthatha Central Police Station on fraud and contravention of the Municipal Finance Management Act charges.
Provincial Hawks spokesperson, Captain Yolisa Mgolodela, said the arrest of the five was in relation to a R38 million tender that was awarded by the district municipality in 2012 for installation of water reading meters, which were already installed at the time the tender was awarded.
“The said company is further alleged to have subcontracted another company which is reported to have taken over the tender and received the proceeds.
“The investigations further revealed that the subcontracted company was already paying considerable amounts of money to the bidding committee during the bidding process,” said Mgolodela.
The five arrested suspects were released on R10 000 bail each and the matter was postponed to May 9, 2022, for further investigation.
Alfred Ndzo District Municipality spokesperson, Lixolile Petela, said the municipality had no comment on the arrests, as none of the individuals are currently employed by the municipality, adding that the district municipality was ready to assist the Hawks in whatever way necessary in their ongoing investigation.
