3D illustration of private investigator files with the words investigation and fraud
A businessman has been arrested after allegedly misrepresenting the extent of the work done by his company after being awarded a municipal contract.
Sandile Tervin Malusi appeared in the Gqeberha Specialised Commercial Crime Court on Tuesday and is set to face charges of fraud and contraventions of the Municipal Finance Management Act.
The 44-year-old was released on R2 000 bail, and the matter was postponed until 2 March for the accused to secure legal representation.
Incomplete municipal work
Malusi received a municipal contract worth R189 000 in 2023 for the servicing and maintenance of water-bound trailers and power craft equipment.
His business entity, Zenande Corporations, was registered in March 2023 and was soon awarded the municipal contract.
He is accused of submitting a job card claiming the “adequate” completion of the work, which was later processed by the municipality.
“The investigation confirmed the allegations that full payment of the contract value was processed and transferred into the service provider’s bank account, notwithstanding the incomplete execution of services,” confirmed Eastern Cape Hawks spokesperson Warrant Officer Ndiphiwe Mhlakuvana.
“These actions were alleged to have directly undermined the statutory responsibilities of the accounting officer and compromised the integrity of municipal procurement systems.”
No municipal accomplices
Mhlakuvana stated that the job card was “irregularly authorised” and that Malusi is accused of only partially providing the service and improperly claiming an amount which “prejudiced” the municipality.
The matter was referred to the Hawks after financial control, governance frameworks and supply chain management prescript contraventions were found.
Malusi and his company will face charges, but no accomplices within the municipality have been identified.
“At the moment, no person from the municipality is under investigation; however, the matter is still under meticulous investigation,” confirmed to The Citizen.
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