Eastern Cape authorities have arrested two individuals, including a Member of Parliament (MP), in connection with an alleged R1.6 million fraud involving the Joe Gqabi District Municipality.
Mandlenkosi James Matutu, an MP for the uMkhonto weSize (MK) Party, and municipal official Thembelani Ngceba were taken into custody by the Hawks in Barkly East on Tuesday and appeared in court the same day.
According to the Hawks, Matutu, owner of Vukabalele Trading CC and Zim-Zet Trading, was awarded a 2019 tender to install water pipes in Ugie. Investigators say the tender process was manipulated: municipal officials allegedly confirmed deliveries that never occurred and approved fake invoices and delivery notes.
Funds were reportedly routed through multiple accounts, including Matutu’s personal account and Zim-Zet Trading, which he solely controls. The meticulous investigation by the Hawks revealed that the municipality suffered a financial loss exceeding R1.6 million.
Both Matutu and Ngceba were granted bail of R5,000 each and are expected back in court on May 5, 2026, according to Eastern Cape Hawks spokesperson Ndiphiwe Mhlakuvana.
