MTHATHA: Phindile Mtshabe (41) appeared before the Mthatha Specialised Commercial Crime Court on 26 September 2025 after being arrested in connection with fraud allegations in the amount of R1.9 million.
According to a statement by the Hawks, the case dates from 2015, when Lakhaza Construction Company was reportedly awarded a tender by the Ntabankulu Local Municipality for the construction of a landfill site. The director of the company allegedly appointed Mtshabe as project manager, entrusting him with the responsibility of sourcing quotations for construction materials and coordinating supplier payments.
“The reports established that Mtshabe misrepresented to the complainant that quotations had been obtained from Natal Scales Company and Ekagubhela Hyper Projects. Subsequently, the suspect apparently provided banking details claiming that they belonged to the said companies. Payments totalling R1.9 million were purportedly made to the supplied Standard Bank and FNB accounts,” the statement read.
“A few days later, no deliveries were received. Upon verification, the alleged suppliers confirmed that the invoices and quotations were fraudulent and had not originated from them. A case docket was opened, and the matter was handed over to the Hawks for investigation.
“The investigation revealed that the bank accounts used for the transactions were in fact registered in Mtshabe’s name, confirming his suspected direct involvement in the fraudulent scheme. Further investigation linked the contact numbers on the fraudulent documents to an associate of Mtshabe, who was previously introduced to Lakhaza Construction by the accused.”
After years of evasion, Mtshabe was traced and arrested by the Hawks at Mthatha on 26 September 2025. He appeared before the Mthatha Specialised Commercial Crime Court on the same day, where he was granted bail of R2,000. The matter was postponed to 21 October 2025 for docket content.
