The Special Investigating Unit (SIU) has struck a significant blow against corruption at the power utility Eskom, obtaining a preservation order to freeze assets linked to an employee accused of orchestrating a brazen kickback scheme involving a R54 million tender.
The order, granted by the Special Tribunal, effectively seizes a luxury property in Polokwane and a vehicle belonging to Johannes Seroke Mfalapitsa, an Eskom surveyor and project manager, and his wife, Ndiyafhi Denge.
The seizure follows an intensive investigation that uncovered how Mfalapitsa allegedly manipulated procurement processes to channel millions of rands into his family’s bank accounts.
According to the SIU, Mfalapitsa sat at the centre of an alleged corrupt network that siphoned funds from a contract for high-definition surveying services. While employed as an employer’s agent and technical evaluator for the tender, Mfalapitsa allegedly facilitated the awarding of contracts to specific service providers who, in turn, funnelled money back to him and his relatives.
The investigation revealed that Mfalapitsa and his family received approximately R8 million in illicit payments. The corruption was reportedly a family affair, utilizing a close-knit network of relatives to launder the proceeds. Mfalapitsa’s spouse, Ndiyafhi Denge, allegedly received over R2.2 million directly from the scheme.
The web extended to Mfalapitsa’s brother, David Mfalapitsa, who received over R228,000 from a director of one of the favoured service providers. Furthermore, the investigation implicated Mpho Negondeni, a woman raised by Mfalapitsa’s spouse “as her own child”. Negondeni’s company, Tabogambambe (Pty) Ltd, allegedly acted as a conduit, receiving over R3.6 million from service providers. These funds were then used to finance the construction of the seized luxury property in Bendor and to make further payments to Denge.
The SIU claims forensic analysis of bank statements painted a clear picture of how state funds were diverted. Eskom paid over R29 million to three primary service providers under the contested contract: Buzwe Geomatics Engineering Services (Pty) Ltd, NTG Solutions CC, and Litha Langa Consulting CC.
Once these companies received payment from the utility, they allegedly made a series of “round-figure, VAT-less payments” to entities and individuals linked to Mfalapitsa.
Buzwe Geomatics, which was awarded the largest share of 25% of the contract value, appears to have been the primary benefactor of the scheme.
The SIU found that Buzwe funnelled an estimated R7 million to the Mfalapitsa network. Evidence suggests Mfalapitsa actively favoured Buzwe during work allocations, even going against the direct advice of his supervisor.
The relationship between Mfalapitsa and Bulelani Lengoasa, the director of Buzwe Geomatics, was described as close; Lengoasa personally paid Mfalapitsa’s brother and made direct payments exceeding R155,000 to contractors building a swimming pool and balustrades at the official’s private home.
The SIU’s findings highlight a severe breakdown in governance and a “systemic conflict of interest”.
Mfalapitsa occupied multiple conflicting roles throughout the tender process, in violation of Eskom’s internal policies. He helped draft the scope of work, evaluated the technical submissions of bidders, and was subsequently appointed as the project manager for the awarded contract.
Crucially, the SIU noted that while Mfalapitsa was evaluating bids, his spouse was already receiving payments from one of the bidders, NTG Solutions CC. Despite this clear conflict, Mfalapitsa failed to declare these financial interests in his annual declarations from 2016 through 2024. Following the SIU’s referral, disciplinary action was initiated, and Mfalapitsa is currently suspended from his position at Eskom.
The preservation order, granted by Justice Margaret Victor at the Special Tribunal on 24 November publicised by the SIU on 9 December, specifically targets the proceeds of this alleged crime.
The primary asset frozen is a residential property located at Erf 647 in Bendor, Polokwane, Limpopo. Valued at approximately R3.9 million, the SIU contends that at least R1.5 million of the construction costs for this house originated from the unlawful payments made by the tender service providers. The order prohibits Mfalapitsa, Denge, and any other parties from selling, leasing, or transferring the property.
Additionally, the Tribunal ordered the preservation of a Nissan NP200 light utility vehicle. Investigations revealed that Mfalapitsa acquired the vehicle from another Eskom employee using funds traced back to the corrupt scheme. The respondents have been ordered to hand over the Natis documents for the vehicle to the SIU within three days and must maintain insurance on both the home and the car.
This preservation order serves as an interim measure to secure the assets while legal proceedings continue. The Special Tribunal has ordered that the freeze remain in place pending the finalisation of a review application, which the SIU must institute by 22 December.
In that upcoming civil action, the SIU intends to review and set aside Eskom’s decision to award the tender to Buzwe, NTG, and Litha Langa. The unit will seek to have the contracts declared void ab initio (invalid from the start) and will pursue the recovery of financial losses suffered by the state.
The SIU has confirmed that evidence pointing to criminal conduct will be referred to the National Prosecuting Authority (NPA) for further prosecution.
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