A Gqeberha businessman has been arrested and charged, together with his company, for alleged fraud and contravention of the Municipal Finance Management Act.
Sandile Malusi, 44, the owner of Zenande Corporations, was arrested by the Serious Commercial Crime Investigations unit on Tuesday and appeared in court, where he was released on bail of R2,000.
According to Hawks spokesperson Warrant Officer Ndiphiwe Mhlakuvana, in March 2023, Malusi, representing his business entity, registered as a service provider and was awarded a municipal contract for the servicing and maintenance of marine operational equipment.
The servicing included powercrafts and trailers, used at the Beach Office in Summerstrand.
“It is alleged that, notwithstanding the contractual obligations, the services were only partially rendered.
“Despite this material non-performance, a job card purporting full or adequate completion of the work was [allegedly] irregularly authorised,” Mhlakuvana said.
“The authorisation was ostensibly effected under instruction, in contravention of applicable financial controls, supply chain management prescripts and governance frameworks.
“As discrepancies were picked up, the matter was handed over to the Hawks for investigation.
“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 [alleged] incomplete execution of services.
“These actions were alleged to have directly undermined the statutory responsibilities of the accounting officer and compromised the integrity of municipal procurement systems.”
The amount alleged to have been involved was more than R189,000.
Malusi appeared in the Gqeberha Commercial Crimes Court, where the matter was postponed to March 2 for him to obtain legal representation.
The Herald
