A former head of legal, compliance and governance at the Eastern Cape Development Corporation was among those arrested.
The Hawks’ Serious Corruption Investigation Unit in East London have arrested four men accused of orchestrating a multimillion-rand fraud, theft and corruption scheme at the Eastern Cape Development Corporation (ECDC).
The men were handcuffed on Thursday, 4 December 2025.
Crimes
Hawks spokesperson Warrant Officer Ndiphiwe Mhlakuvana said the alleged crimes, which involved more than R4.2 million, centre on an irregular and unlawful contract with the ECDC.
The accused included Mandla Gibson Mpikashe, 47, former head of legal, Compliance and Governance at the ECDC, while Simphiwe Mkhululi Mbabane, 45, Bayethe Maswazi, 49, and Mpumelelo (Mtumelelo) Mkosana, 54, are all directors of Mbabane and Sokutu Inc attorneys.
“It is alleged that Mpikashe was entrusted with safeguarding governance and compliance processes at ECDC, where he ostensibly colluded with the above-mentioned service provider to irregularly conclude a Service Level Agreement (SLA) for debt collection services,” Mhlakuvana said.
“The entities, Mbabane Maswazi & Sokutu Incorporated, were appointed strictly for the Panel of Legal Services in March 2016, and not for the Panel of Debt Collectors. In 2017, Mbabane and Sokutu Inc. attorneys were reportedly changed to Mbabane and Maswazi Inc. attorneys.”
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Court appearance
Mhlakuvana said, despite this limitation, an SLA dated May 2017, purportedly signed by Mpikashe on behalf of ECDC, extended the scope of work to include debt collection without following any lawful procurement procedures.
“This deviation allegedly created an avenue through which the service provider unlawfully deducted approximately R4.2 million from ECDC, constituting an undue, unjustified, and unlawful financial benefit. The matter was referred to the Hawks for intensive investigation.
“The accused appeared before the East London Magistrate’s court on the same day of their arrest, where Mpikashe and Mkosana were released on R5 000 bail each, while Mbabane and Maswazi were granted R10 000 bail each,” Mhlakuvana said.
The matter was remanded to 19 January 2026 for further investigation.
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