Nine people arrested in connection with alleged yellow-fleet fraud, corruption, and money laundering worth millions in the Eastern Cape have been granted bail.
The nine accused, along with two companies, appeared before the EmaXesibeni (Mount Ayliff) Magistrate’s Court on Thursday.
Accused
The accused include Kwane Capital director Mcebisi Rudolf Mlonzi; company employee Bambangazibini Tabata; former Alfred Nzo District Municipality (ANDM) senior officials Xolani Masiza, Paul Mahlasela and Zuko Mani; and former Avis and Barloworld employees Clive Else and Shawn Govender.
They face charges of fraud, corruption, money laundering, and contravention of the Municipal Finance Management Act (MFMA).
“They briefly appeared in court and were granted bail of R10 000 each. They appeared alongside Monalitho Muba and Xola Bomela, as well as their business entity, Chumani Water Solutions, who were also released on the same bail conditions,” said NPA spokesperson Luxolo Tyali.
The matter has been postponed to 30 April 2026 for enrolment in the Mthatha Specialised Commercial Crimes Court.
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Charges
The charges relate to a R75-million yellow-and-white fleet lease agreement between Kwane Capital and the Alfred Nzo District Municipality.
The Hawks’ Serious Corruption Investigation (SCI) and Serious Commercial Crime Investigation (SCCI), in collaboration with other law enforcement agencies, handcuffed a group aged between 43 and 73 years, including two corporate entities from various localities, including areas outside the province, on Wednesday.
The arrests follow investigations launched by the Special Investigating Unit (SIU) into the contract between the municipality and Kwane Capital from 2015 to 2018.
Investigations
Investigations revealed an allegedly elaborate scheme in which Mlonzi misrepresented Kwane Capital as the legitimate owner of vehicles, plant machinery, and equipment when the lease contract was awarded.
It is alleged that the company instead relied on hired or leased assets sourced from third-party service providers, namely Avis and Barloworld.
It is further alleged that senior ANDM officials received gratifications to contravene provisions of the MFMA in furtherance of the unlawful contract. Former officials from Avis and Barloworld allegedly participated in the scheme to favour Kwane Capital and received payments for their roles.
Associates of the former municipal manager and procurement manager, together with their companies, allegedly received payments that were laundered for the benefit of the executives.
Tyali said the NPA and the Hawks remain committed to working collaboratively to ensure accountability and to secure convictions in matters involving corruption and financial misconduct “that undermine service delivery and prejudice communities.”
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