Makhanda High Court confirmed the R165 million worth restraining order against Amathole District Municipality officials, directors of businesses and their businesses who are charged with fraud, corruption, money laundering, assisting another to benefit from proceeds of unlawful activities and contravention of the Municipal Finance Management Act (MFMA) on 16 May 2023.
The accused Ntsokolo Chris Magwangqana (64), Nkosinathi Rooseveld Soga (62), Mpumelelo Vincent Shezi (45), Lulama Taleni (45), Ongama Mahlawe (55), Goodman Ntandazo Vimba (46), Bongani Mpeluza (50), Eddison Vuyani Gaga (37), Hellen Busisiwe Kwinana-Boadi (54) and Lovemore Khativhu (41) have been released on bail.
It is alleged that in 2013, Amathole District Municipality embarked on a project Accelerated Sanitation Programme where 66 700 ventilated improved pit (VIP) toilets in various villages within the Amathole District Municipality were to be erected.
An amount of R631 million was allocated for the project and Siyenza Group was appointed to execute.
After the payment of the first trench, National Treasury lodged a complaint that the company Siyenza Group submitted two false tax certificates prior to the awarding of the tender. Investigations ensued and the money to the value of more than R149 million was traced to a number of beneficiaries’ accounts besides the R16 million house which was bought by the director of Siyenza Group using the funds acquired for the project.
The money and the house were confiscated and the provisional restraint order was granted on 2 December 2019 after their arrest on 22 November 2019 followed by the confirmation of permanence on 16 May 2023.
The matter is currently on Makhanda High Court roll was remanded to 20 September 2023 as some of the accused lodged representations to the National Director of Public Prosecution.
The joint effort of the Special Investigation Unit Task Team of Anti – Corruption, East London Priority Crime Specialised Investigation and the office of the National Prosecuting Authority is commended by the Provincial Head Major General Mboiki Obed Ngwenya for the sterling job.
