Former Ngqushwa Municipality officials in court over corruption, fraud

Monday, October 4, 2021

Former Ngqushwa Local Municipal Manager, Misiwe Phyllis Mpahlwa (54), and her co-accused have been  each released on R1000 bail  after they were arrested on allegations of fraud and corruption.

Mpahlwa, the municipality’s director of corporate services Mkhuseli Wiseman Mxekezo as well as former acting Chief Financial Officer, Tinus Matthysen (66), were last week arrested by the East London based Hawks' Serious Commercial Crime Investigation team for allegations of fraud, corruption and contravention of Municipal Financial Management Act (MFMA).

They were released on bail on Friday.

Eastern Cape Hawks spokesperson Captain Yolisa Mgolodela said it was alleged that Mxekezo deliberately or negligently created irregular expenditure by signing a memorandum dated 11 December 2019 for an event that would be held on the 12 December 2019 without procurement processes being followed. The expenditure was an amount of more than R273 000 for a Christmas event for the elderly people of the Peddie community.

She said: “It is further alleged that Matthysen failed to prevent the irregular, unauthorised fruitless and wasteful expenditure by approving payments to service providers without necessary documentation while he was on leave. Matthysen is reported to have been complying with the instruction for him to effect the payment by the municipal manager at the time, Misiwe Mpahlwa.”

Mgolodela said the arrest of the trio was subsequent to the arrest of Busisiwe Mfunda (34) on 29 July 2021. She also appeared before the Peddie Magistrates' Court on the same day and was released on R1000 bail.

Mfunda was alleged to have signed a memorandum as an applicant requesting for procurement of goods and services for the said Christmas event.

“It is further alleged that after approval, she went on to source the quotations from various fictitious service providers for her personal enrichment by bypassing the supply chain office,” she said.

Mfunda will thus be joining her co-accused at the same court on 6 October 2021 pending further investigations. –