The Hawks arrested a third person today (October 7) in connection with a fraud and corruption scheme in which Govan Mbeki Municipality paid millions to a  service provider for goods and services that were allegedly never rendered nor delivered.

A pensioner who worked for the municipality before retirement, Henry Swart (65) handed himself over to the Hawks.

He will appear the Evander Magistrate’s Court dock tomorrow (October 8) alongside service provider Brutus Hlophe (46) and Caiphus Ndimande (48) a municipal official who was expelled from the municipality.

Members of the Secunda Serious Commercial Crime Investigation (SCCI) arrested Hlophe and Ndimande.

According to the spokesperson for the Hawks in Mpumalanga, Lieutenant Colonel Magonseni Nkosi, the investigation stems from allegations that the service provider invoiced Govan Mbeki Municipality on December 5, 2022 for goods and services allegedly not rendered or delivered. The municipality subsequently made payment on December 9, 2022.

“Preliminary investigations revealed that the service provider had been appointed to the municipality’s panel of service providers in June 2021. The appointment stipulated that quotations would be requested on a rotational basis, as and when required, through the municipality’s supply chain management processes. It further required a Service Level Agreement (SLA) to be concluded between the service provider and the municipality.”

Nkosi said investigators established that the prescribed procurement processes were allegedly not followed. Although Nkosi stated the amount in question is R1.5m, the Govan Mbeki Municipality said in a media statement yesterday the amount is R2.5m.

Warrants of arrest were subsequently authorised for Hlophe, Ndimande and Swart.

The company, J Mabhengu Construction and Transport (Pty) Ltd, represented by its director, Hlophe, is also cited as an accused entity in the matter.

“he three together with the company, appeared before the Evander Magistrate’s Court facing charges of fraud and corruption in terms of the Prevention and Combating of Corrupt Activities Act (PRECCA).

“Hlophe and Ndimande appeared before court on Tuesday while Swart appeared before court on today. They were all remanded in custody pending their next court October 8, for formal bail application,” said Nkosi.

The head of the Hawks in the province, Major General Nico Gerber said the Hawks remain committed to pursuing allegations of corruption and fraud involving public institutions and will continue working to ensure that those entrusted with public resources are held accountable.

“Public funds must be protected and used lawfully for the benefit of the communities they are intended to serve”, concluded Gerber.