Share

SIU hails arrest of Kwane Capital director and EC municipal manager

The Special Investigating Unit (SIU) has hailed the arrests of Kwane Capital's director, Mcebisi Mlonzi, and the municipal manager of the Amahlathi Local Municipality, Balisa King Socikwa, as a "great milestone".

They were arrested over the weekend and charged with fraud, money laundering and contravention of the Municipal Finance Management Act.

According to the Hawks, Mlozi and Socikwa appeared in the Stutterheim Magistrate's Court on Monday on charges of fraud to the tune of R92m.

"The Eastern Cape Hawks-led multidisciplinary task team pounced on the two in the early hours of Sunday morning in Qumbu and Sandton. Crime intelligence and detectives formed part of the task team which is tasked with investigating fraud and corruption in the Eastern Cape," Hawks spokesperson Brigadier Hangwani Mulaudzi said in a statement on Monday.

He added Kwane Capital had allegedly received a R31m contract from the Port St Johns Local Municipality to supply yellow plant machinery.

"However, the Amahlathi Local Municipality initiated a regulation 32 appointment and the appointment saw, in April 2014, Socikwa allegedly signing, on behalf of the municipality, a lease agreement with Mlozi for the purchase of yellow plant machinery valued at R92m.

"Investigations revealed that the terms of the contract were flouted," Mulaudzi said.

According to the SIU, the arrests were a step forward in the fight against corruption.

"This is a great milestone in the fight against corruption in our country. It is also a show of force and collaboration between members of the Anti-Corruption Task Team," SUI spokesperson Kaizer Kganyago said in a statement on Monday.

He added the SUI had been investigating the case since 2016.

"The collaboration between the corruption-busting agencies is continuing to bear fruit. The SIU has been investigating alleged corruption associated with Kwane Capital for a while now in different municipalities.

"Our investigation has contributed a great deal in getting to the bottom of this case that has culminated in these arrests," Kganyago said.

A range of contracts within Eastern Cape municipalities and the City of Johannesburg are being investigated.

According to Mulaudzi, Mlanzo and Socikwa was released on bail of R50 000 and R30 000, respectively.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Voting Booth
Do you think corruption-accused National Assembly Speaker Nosiviwe Mapisa-Nqakula will survive a motion of no confidence against her?
Please select an option Oops! Something went wrong, please try again later.
Results
No, her days are numbered
41% - 559 votes
Yes, the ANC caucus will protect her
59% - 803 votes
Vote
Rand - Dollar
18.88
+0.3%
Rand - Pound
23.86
+0.2%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.31
+0.2%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE