KOMANI – The Hawks have arrested a 51-year-old municipal manager in connection with allegations of fraud, corruption and money laundering linked to a Joe Gqabi District Municipality tender worth more than R1.6 million.

Dumisani Lusawana, a manager in the Department of Water and Sanitation Services at the municipality, was arrested on Thursday, 3 September and briefly appeared in the Barkly East Magistrate’s Court on the same day.

The case relates to a tender advertised on 1 December 2019 for the procurement and installation of water pipes intended to benefit the Ugie community.

The tender was awarded to Vukabalele Trading CC.

According to the Hawks, their Serious Commercial Crime Investigation team in Komani found that the procurement process was allegedly manipulated through fraudulent and collusive conduct involving the service provider and certain municipal officials.

Officials who acted as end-users in the transaction allegedly fraudulently certified delivery notes and invoices, confirming that the water pipes had been received.

The municipality subsequently made full payment to the service provider, although the Hawks allege that the goods were never delivered.

Money trail forms part of Hawks’ investigation

The investigation also uncovered financial transactions that the Hawks said were allegedly indicative of money laundering and illicit enrichment.

According to the investigation, funds were allegedly channelled through various accounts, including transfers to Zim-Zet Trading (Pty) Ltd, an entity solely directed by principal accused Mandlenkosi James Matutu, as well as to his personal bank account.

Matutu, a Member of Parliament in the National Assembly and the sole director of Vukabalele Trading CC and Zim-Zet Trading (Pty) Ltd, was arrested in March along with Thembelani Ngceba, a Water Supply Manager at Joe Gqabi District Municipality.

Both were granted bail of R5,000.

According to the Hawks, Lusawana was positively linked to the matter following an extensive investigation.

The total actual prejudice suffered by the municipality is estimated at more than R1.6 million.

Lusawana was granted bail of R5,000 following his appearance in court.

The matter was postponed to 7 September, when Lusawana is expected to join his co-accused. The case will then be transferred to the Elliot Regional Court.

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