The East London Regional Court convicted four former municipal officials yesterday, 3 October of fraud and contravention of the Municipal Financial Management Act (MFMA): Misiwe Phyllis Mpahlwa (54), former Ngqushwa Local Municipal Manager; Tinus Matthysen (66), former acting Chief Financial Officer; Mkhuseli Wiseman Mxekezo (49), former Director of Corporate Services; and Busisiwe Mfunda (37), former Mayor’s Secretary.
The four officials were arrested by the East London Serious Commercial Crime Investigation of the Hawks in 2021 and were each released on R1 000 bail.
According to a Hawks spokesperson, Warrant Officer Ndiphiwe Mhlakuvana, their sentencing emanated from an incident where Mxekezo unlawfully and negligently authorised irregular expenditure by signing a memorandum for a Christmas event scheduled for 12 December 2019, without any procurement processes being followed.
“Matthysen subsequently failed to prevent the irregular, unauthorised, and fruitless expenditure by approving payments to service providers without requisite documentation, even though he was officially on leave.”
Mhlakuvana added that he further complied with an unlawful instruction from the Municipal Manager at the time, Mpahlwa.
“Mfunda, who initiated the memorandum requesting procurement of goods and services, deliberately sourced quotations from fictitious service providers for her personal benefit, bypassing the municipality’s supply chain management processes.”
Mhlakuvana said that Mpahlwa, as the Accounting Officer, sanctioned the irregular transaction, facilitating the unlawful payments.
“During the audit, discrepancies were identified and the matter was referred to the Hawks for a thorough probe.”
The investigation revealed that the quartet intentionally colluded in orchestrating the unlawful deviation of the procurement process for personal enrichment.
“Their unlawful conduct resulted in losses to the municipality of more than R273 000, money intended to fund a Christmas programme for the elderly residents of the Peddie community.”
After numerous court appearances, the East London Regional Court sentenced the quartet on 3 October 2025 to three years’ direct imprisonment, or each to pay a fine of R120 000.00.
