Mnquma Municipality’s alleged fraudsters released on bail


06 October 2020

Eastern Cape Correspondent/PretoriaLIVE

BUTTERWORTH – Two suspects, Malik Yusuf Addae , aged 69, and his co-accused Meliwe Magwiro, aged 38, appeared in the Butterworth Magistrate’s Court on Tuesday, after they were arrested for defrauding the Mnquma Local Municipality of R982 000.

“The project was for construction of internal streets at Mnquma Local Municipality to the value of R 9.1 million during August 2013. The investigation revealed that the values on invoices had been inflated,” said Hawks spokesperson in the Eastern Cape province, Lwando Zenzile.

He said the pair’s co-accused were arrested in August, and they have already appeared before the Butterworth Magistrate’s Court.

“These two, Addae who is a consultant in the company and Magwiro who owns the construction company could not be held in custody as at the time they were being quarantined for Covid-19,” said Zenzile.

“Addae and Magwiro were granted R10 000 bail each and they are expected reappear on the 02 November 2020 before the same court.”

In August, the Hawks said the Mnquma local municipality invited bidders for the preliminary designs of the Ngqamakwe town internal street surfacing in August 2013.

HMP Africa and CWZ Matoti & Associates were appointed as consulting engineers for the project, while Soyama Construction and Luqaqambo Civil Construction were appointed for the street surfacing.

The Hawks said it was found the workmanship was poor and the payment certificates signed by municipal officials, who formed joint ventures. Services, however, were not rendered.

Upon investigation, the Hawks found more that over R9.1 million was lost by the municipality.

The investigation also led to findings of over-expenditure of R982 000, which was charged to the municipality.

It is alleged the project manager signed off all invoices and the service providers pocketed the money, while no work was done.


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