Alfred Nzo Five Arrested in Connection with R38 Million tender

Alfred Nzo District Municipality’s former chief financial officer Luyolo Fokazi, 49, the former acting municipal manager, Xolani Masiza, 53, the former supply chain management assistant manager, Zuko Mani, 44, the former supply chain manager Paul Mahlasela, 47, and businessman and owner of Chumani Solutions, Xola Bomela, 53, appeared in the Mthatha Specialised Commercial Crimes Court on Thursday, on allegations of R38 million fraud case.

News 24 reports that the five were allegedly awarded a tender for the installation of water meters, to a contractor even though the job was already completed. It is reported that on Wednesday the hawks arrested the four employees along with a local businessman for fraud and contravention of the Municipal Finance Management Act.

Mgolodela said Bomela’s company was subcontracted by the company awarded the R38 million tender back in 2012.

Bomela’s company allegedly ended up taking over the tender as the main contractor and received the money from the Alfred Nzo District Municipality.

The communities of Alfred Ndzo have been struggling with access to clean water and sanitation

It is reported that in December,  the cash-strapped Matatiele local municipality revealed Alfred Nzo District Municipality owed it an outstanding R13 million debt, sinking the municipality deeper into financial strife.

The five alleged suspects were each released on R10 000 bail on Thursday.

The municipality is no stranger to allegations of fraud as it was cautioned for underperformance and noncompliance as it spent less than 40% of the 2020 budget in addition, the National Treasury threatened to stop R384 million in funding due to under-performance and non-compliance relating to water service and municipal infrastructure

Not long after the red flag In August 2021, the municipality’s mayor, Sixolile Mehlomakhulu, was suspended after his office allegedly awarded an R65 000 bursary to his son, Yanga, to study for a BSc degree at Wits University.