Three accused granted R5 000 bail in Govan Mbeki Municipality fraud case
The case was postponed to November 19.
The Evander Magistrate’s Court has granted three accused bail of R5 000 each in an alleged fraud and corruption case involving Govan Mbeki Local Municipality and payments exceeding R1.5m for goods and services allegedly never delivered or rendered.
Brutus Hlophe (46), a service provider, Caiphus Ndimande (48), a former municipal official who was expelled from the municipality, and Henry Swart (65), a retired municipal employee, were granted bail on October 14.
Hlophe and Ndimande were arrested on October 6 during an operation conducted by members of the Secunda Serious Commercial Crime Investigation (SCCI).
Swart was arrested on October 7 after handing himself over to the Hawks.
The investigation stems from allegations that the service provider invoiced the municipality on December 5, 2022, for goods and services that were allegedly never delivered or rendered.
The municipality reportedly made the 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 also required a service-level agreement (SLA) to be concluded between the service provider and the municipality.
However, investigators allegedly established that the prescribed procurement processes had not been followed.
Warrants of arrest were subsequently authorised for Hlophe and the two former municipal officials, Ndimande and Swart.
Hlophe’s company, J Mabhengu Construction and Transport (Pty) Ltd, represented by him as its director, is also cited as an accused entity in the matter.
Hlophe and Ndimande first appeared in court on October 7, while Swart appeared on October 8.
All three were remanded in custody before their formal bail applications.
They were granted bail on October 14, and the matter was postponed to October 20 for further investigation.
When they appeared again on October 20, the case was postponed to November 19 for further investigation.
