Nine individuals and two companies appeared in the EmaXesibeni Magistrates’ Court over a R75 million fleet contract linked to Alfred Nzo District Municipality.
The accused face charges of fraud, corruption, money laundering and contravention of the Municipal Finance Management Act (MFMA). The case relates to a yellow and white fleet lease agreement between Kwane Capital and the Alfred Nzo District Municipality (ANDM) between 2015 and 2018.
What happened
Nine accused persons, aged between 43 and 73, briefly appeared before the EmaXesibeni (Mount Ayliff) Magistrates’ Court.
They include:
- Mcebisi Rudolf Mlonzi, director of Kwane Capital
- Bambangazibini Tabata, company employee
- Former ANDM senior officials Xolani Masiza, Paul Mahlasela and Zuko Mani
- Former Avis employee Clive Else
- Former Barloworld employee Shawn Govender
- Monalitho Muba
- Xola Bomela
Their business entity, Chumani Water Solutions, also appeared in court.
Each accused was granted bail of R10 000.
The matter was postponed to 30 April 2026 for enrolment in the Mthatha Specialised Commercial Crimes Court.
The arrests were carried out by the Hawks’ Serious Corruption Investigation (SCI) and Serious Commercial Crime Investigation (SCCI) units. The Tactical Response Team (TRT) and National Intervention Unit (NIU) supported the operation.
The investigation followed a referral from the Special Investigating Unit (SIU) into the fleet contract concluded between ANDM and Kwane Capital from 2015 to 2018.
Why it matters
The case concerns a R75 million municipal fleet lease agreement funded through public money.
The Municipal Finance Management Act regulates how municipalities manage contracts and public funds. Alleged violations raise concerns about procurement compliance, asset ownership and the use of intermediaries in public contracts.
The matter also affects residents of Alfred Nzo District, as fleet contracts relate to service delivery, plant machinery and municipal operations.
