Cape Town Mayor Geordin Hill-Lewis has publicly confirmed that a major police investigation into alleged municipal contract fraud, which saw raids on 26 premises this week, was initiated after the city itself uncovered and reported the suspected wrongdoing.
The raids, conducted over the past two days by the police’s Commercial Crimes Investigation Unit, targeted premises across the metro. Mayor Hill-Lewis stated he was first informed of the allegations approximately a month ago by the City Manager, Lungelo Mbandazayo.
According to the Mayor, Mbandazayo not only alerted him but also launched an internal investigation before referring the matter to the South African Police Service (SAPS).
Pushing back against critics who suggest the police action indicates corruption within the city government, Hill-Lewis argued the opposite. “I chuckle when I see people saying that this is indicative of something wrong. This is indicative of something right,” he said. “The system working to weed out malfeasance and corruption whenever it is discovered or found.”
He emphasized the city’s resolve, stating, “We will not tolerate that kind of conduct in Cape Town. If anyone is up to no good among the 34,000 people who work for the city of Cape Town, they will eventually be discovered and they will be rooted out root and branch.”
The Mayor was clear that this investigation is entirely separate from the high-profile R1 billion housing fraud tender case involving alleged gang boss Ralph Stanfield and former mayoral committee member Malusi Booi. “It is not related to the Stanfield matter. This is an entirely separate matter and it is also construction related,” Hill-Lewis explained, noting the probe involves road construction and other construction work.
While the city has expressed support for the police probe, it has also raised a strong objection to the SAPS publicly stating that the contract amount under investigation is R1.6 billion. Mayor Hill-Lewis labelled the disclosure “irresponsible and unfortunate.”
“We have taken that up very strongly with the SAPS to object to the use of that because it is so easily misunderstood by the public to suggest that that is the total amount under investigation,” he said. The Mayor clarified that the actual amount of suspected fraud is likely a “very minuscule fraction” of the R1.6 billion figure, though he could not provide an exact number until the investigation is complete.
The city confirmed that its internal fraud department continuously works to monitor the conduct of its 34,000 staff members and suppliers. As of now, there have been no reports of any arrests or suspensions directly linked to this week’s raids.
