The contract was valued at R880 000.
A company director is expected to appear in court on fraud charges. Picture: iStock
A company director is expected to appear in court on fraud charges after allegedly using rented park homes to fulfil a Department of Transport tender, with the units later repossessed when rental payments reportedly went unpaid.
The KuGompo Hawks’ Serious Corruption Investigation (SCI) arrested the company and its sole director following a protracted investigation into alleged fraud relating to the tender.
Arrest
The suspects were arrested on 6 October 2026 and are expected to appear before the KuGompo Magistrate’s Court on 7 October 2026.
According to the Hawks, the matter stems from allegations of fraud linked to a tender issued by the Department of Transport in 2023 for the supply, delivery, and assembly of prefabricated modular units for the Middledrift Roads Maintenance Camp, reportedly situated within the Raymond Mhlaba Local Municipality area.
Contract
Hawks spokesperson Warrant Officer Ndiphiwe Mhlakuvana said the contract was valued at R880 000 and required the successful service provider to supply and deliver the specified modular units in accordance with the contractual terms and conditions.
Mhlakuvana said the tender was reportedly awarded to a company of which the 42-year-old suspect is the sole director.
“It is alleged that the company delivered eight park homes to the designated departmental site at Middledrift. While the delivery appeared to indicate compliance with the tender requirements, subsequent enquiries focused on the provenance, ownership and contractual basis upon which the units had been supplied.”
Discrepancies
Mhlakuvana said the department reportedly identified discrepancies and subsequently referred the matter to the Hawks for investigation.
“The investigation allegedly established that the suspect had obtained the park homes from a rental company under a rental arrangement and subsequently delivered them to the Department of Transport, as they constituted the contracted supply under the tender.”
According to Mhlakuvana, the investigations established that the rental arrangement was allegedly not maintained, and the rental company subsequently reclaimed the park homes after rental payments had reportedly remained outstanding for about two to three months.
After considering the available evidence, the suspects were arrested and charged with fraud.
