A Gqeberha businessman and his company have been arrested and charged with fraud and contraventions of the Municipal Finance Management Act (MFMA in connection with an alleged irregular municipal contract.
Sandile Malusi, 44, the owner of Zenande Corporations, was arrested on Tuesday by the Serious Commercial Crime Investigations unit. He appeared in the Gqeberha Commercial Crimes Court and was released on bail of R2,000.
According to Hawks spokesperson Warrant Officer Ndiphiwe Mhlakuvana, Malusi registered his company as a municipal service provider in March 2023 and was awarded a contract to service and maintain marine operational equipment used by the Beach Office in Summerstrand. The contract included work on powercraft and trailers.
Investigators allege that the services were only partially completed, despite contractual obligations requiring full performance. Authorities further allege that a job card reflecting full or adequate completion of the work was irregularly authorised, in violation of financial controls, supply chain management regulations and governance frameworks.
As discrepancies were identified, the matter was referred to the Hawks for investigation. The probe reportedly confirmed that full payment of the contract value—amounting to more than R189,000—was processed and transferred to the service provider’s bank account despite the alleged incomplete execution of services.
Investigators said the alleged conduct undermined the statutory duties of the accounting officer and compromised the integrity of municipal procurement systems.
Malusi’s case was postponed to March 2 to allow him time to obtain legal representation.
