R2.7m in luxury vehicles seized in Matlosana Municipality fraud case

Investigators discovered that more than R4 million from the municipal payment was channelled to a vehicle dealership.


The Hawks and the National Prosecuting Authority’s Asset Forfeiture Unit have secured a preservation order for R2.7 million worth of luxury vehicles linked to fraud, corruption and money laundering involving the City of Matlosana Municipality’s chief financial officer and five others.

The North West High Court granted the order on 26 September 2025 against Mercy Phetla and her co-accused.

Municipality paid R6m for services never rendered

An investigation by the Hawks uncovered suspicious payments to a private company over a four-month period.

“Investigation by the Hawks’ Serious Corruption Investigation and Priority Crime Specialised Investigation revealed that between September 2023 and January 2024, the City of Matlosana Municipality paid a service provider, called Variegated (Pty) Ltd, over R6 million for services which were never rendered,” said police spokesperson Lieutenant Colonel Tinyiko Mathebula.

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Funds traced to luxury vehicle purchases

Investigators discovered that more than R4 million from the municipal payment was channelled to a vehicle dealership.

Mathebula said further investigation uncovered that the money was used to purchase three luxury vehicles – a Porsche valued at R2.3 million, a Range Rover valued at R1 million and a Maserati valued at R1.4 million.

According to Mathebula, the court order includes a preservation order for a Mercedes Benz CLA200, Range Rover Evoque, and Maserati Levante S M156, which are valued at R2.7 million.

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Six accused to appear in court

Phetla, who serves as the municipality’s CFO, will appear alongside five others at the Specialised Commercial Crime Court in Klerksdorp on 27 October 2025.

Tiisetso Sebetlela, the director of Variegated, is among the accused. Additionally, Josephine Tsimane, who works as a store official at the City of Matlosana Municipality, has also been implicated.

The other accused are Anga Shongwe, Mathapelo Puswe and Vincent Shongwe.

Brigadier Georgia Moos, the North West Acting Hawks Head, and the Director of Public Prosecutions in the North West, Dr Rachel Makhari, commended the collaborative work between the two entities, which resulted in securing the preservation order.

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