EASTERN CAPE – The Hawks’ Serious Commercial Crime Investigation team in Komani has arrested a 51-year-old within the Department of Water and Sanitation Services at the Joe Gqabi District Municipality, was arrested on Thursday, 3 September 2026, and briefly appeared before Barkly East Magistrate’s Court on the same day.
The matter stems from a municipal tender advertised on 1 December 2019 for the procurement and installation of water pipes intended to benefit the Ugie community. The tender was subsequently awarded to Vukabalele Trading CC.
The Hawks’ investigation revealed allegations that the procurement process was deliberately manipulated through fraudulent and collusive conduct involving the service provider and certain municipal officials entrusted with fiduciary responsibilities.
It is alleged that officials acting as end-users in the transaction fraudulently certified delivery notes and invoices, falsely confirming that the water pipes had been received. The municipality allegedly proceeded to make full payment to the service provider despite the goods allegedly never being delivered.
Further reports uncovered a pattern of financial transactions allegedly indicative of money laundering and illicit enrichment. Funds were allegedly channelled through various accounts, including transfers to Zim-Zet Trading (Pty) Ltd, an entity solely directed by principal accused Mandlenkosi James Matutu, as well as to his personal bank account.
Matutu, a Member of Parliament in the National Assembly and the sole director of Vukabalele Trading CC and Zim-Zet Trading (Pty) Ltd, together with Thembelani Ngceba, a Water Supply Manager attached to the Joe Gqabi District Municipality, were arrested in March 2026. They were each granted bail of R5 000-00.
A case docket was opened and subsequently referred to the Hawks for intensive investigation. Following an extensive investigation, Lusawana was positively linked to the matter and was arrested on 3 September 2026.
The total actual prejudice suffered by the municipality is estimated to be more than R1.6 million.
Lusawana was granted bail of R5 000-00. The matter was postponed to 7 September 2026, when he is expected to join his co-accused and the matter will be transferred to the Elliot Regional Court.
The Provincial Head of the Hawks in the Eastern Cape, Major General Mboiki Obed Ngwenya, applauded the investigation team for their diligence and commitment in ensuring that those allegedly involved in the matter are brought before the courts, irrespective of their positions in public office.