Four accused, including a juristic person, Bhekani Errol Mswane (54) former municipal manager at Newcastle Municipality, Bhekisisa Hlongwane (41) CFO, Velenkosini Lindokuhle Mtshali (44) sole director of Bonakude and Bonakude Consulting Pty Ltd appeared in the Durban Magistrates court following their arrest by Directorate for Priority Crime Investigation’s National Clean Audit Task Team on 29 September 2022, on charges of fraud alternatively theft, contravention of the Municipal Finance Management Act and money laundering.
It is alleged that during 1 Jan 2018 and 31 Jan 2019 the accused colluded to illegally extend an expired contract valued at R7.8 million for Bonakude to provide consulting services to the Newcastle Municipality which were no longer required.
In addition, it is reported that Mswane as the Municipal Manager and Hlongwe as Chief Financial Officer contravened the MFMA by incurring irregular and wasteful expenditure.
It is also reported that Mtshali and Bonakude received the proceeds of the said unlawful activities of Mswane and Hlongwane when they were paid as a result of the non-existent contract.
The accused were all granted R20 000-00 each with the following conditions:
• Accused to surrender passports
• Accused not to apply for travel documents
• Accused not to enter the municipality until trial finalised
• Accused not to contact state witnesses
• Accused 3and 4 not to tender for work at Newcastle Municipality until the trial is finalised.
The case remanded to 1 November 2022 to Specialised Commercial Crimes Court for discovery.
