MK party MP and municipal manager arrested in R1.6m tender fraud
2026-03-25 - 05:31
The Hawks have arrested an MK party MP and a municipal official on charges of fraud, corruption and money laundering linked to losses of more than R1.6 million at the Joe Gqabi District Municipality in the Eastern Cape. Mandlenkosi James Matutu, an MP for former president Jacob Zuma’s MK party, and Thembelani Ngceba, a Water Supply Manager at the municipality, were handcuffed in Barkly East on Tuesday by the Komani-based Serious Commercial Crime Investigation unit of the Hawks, working with the National Prosecuting Authority (NPA) Fraud Matutu is the sole director of Vukabalele Trading CC and Zim-Zet Trading (Pty) Ltd. The arrests stem from a 2019 tender for water pipes in Ugie, allegedly manipulated through collusion between municipal officials and Matutu’s company. Fraudulent delivery notes and invoices were allegedly certified despite no goods being delivered, resulting in full payment to the service provider. Financial crimes Hawks spokesperson Warrant Officer Ndiphiwe Mhlakuvana said the arrest marked a significant development in tackling complex financial crimes. “The matter relates to an alleged public procurement process initiated on 1 December 2019, when the Joe Gqabi District Municipality ostensibly advertised a tender for the procurement and installation of water pipes intended for the Ugie community. Reports indicated that the tender was subsequently awarded to Vukabalele Trading CC.” Investigators uncovered financial transactions pointing to money laundering, with funds allegedly channelled through Matutu’s companies and personal accounts. Investigation Mhlakuvana said: “Meticulous investigation by the Hawks confirmed the allegation and exposed that the Municipality suffered a financial loss of over R1.6 million, which culminated in the arrest of the accused and business entities on 24 March 2026.” The investigation further established that certain municipal officials involved in processing and authorising payments received undue financial gratification from the service provider. Bail Both accused appeared in the Barkly East Magistrate’s Court on Tuesday, where they were granted bail of R5 000 each. The matter has been remanded to 5 May 2026 for further investigation and the appointment of legal representation. Provincial Hawks head Major General Mboiki Obed Ngwenya praised investigators, saying the arrests ensure the accused “face the mighty arm of the law.”