Two high-ranking officials of the OR Tambo District Municipality (ORTDM) have been granted bail of R10 000 each by the Mthatha Specialized Crimes Court following their arrest by the Hawks on Monday, July 31, on allegations of tender fraud to the tune of R168 million.
The two officials, identified as the district municipality’s water and sanitation director Andile Vellem (58) and project manager Mawethu Mtengwana (51), were arrested by the East London-based serious corruption investigation team of the Hawks on Monday, July 31.
Mtengwana was arrested at the district municipality’s offices, while Vellem handed himself over to police.
The third suspect, also a high-ranking official within the municipality, is still at large.
Their co-accused and former municipal manager of the district municipality Owen Hlazo (57), died of COVID-19-related complications in 2021.
According to Mgolodela, the Hawks received a complaint in 2020.
Alleging irregularities regarding certain contracts, irregular payments and payments for services not rendered where some businesses were allegedly given loans upfront, and services were not rendered.
“The investigation was able to trace the flow of funds from the municipality’s coffers to those the service providers’ accounts with work partially or not done at all by submission of fraudulent invoices.”
“The investigation further revealed that senior municipal managers connived with the service providers in siphoning the money from the municipality’s bank account, which prejudiced the municipality cash to the value of R168 million,” Mgolodela added.
The case was remanded to Tuesday, August 29.
Mgolodela said more arrests were imminent in the matter.
OR Tambo District Municipality spokesperson, Zimkhita Macingwane in reaction to the arrest said,
