Hawks probe R45m Mogalakwena fleet tender as arrest follows Emfuleni scandal

The Hawks have arrested a 37-year-old suspect in connection with an alleged R45 million fraud, corruption and money laundering case involving a fleet management tender at Mogalakwena Local Municipality in Limpopo.

The arrest on Wednesday comes amid increased scrutiny of municipal fleet tenders following the R16 million Emfuleni Local Municipality fleet scandal in Gauteng.

The Hawks’ Serious Corruption Investigation team said the Mogalakwena tender was advertised and awarded in 2022, with preliminary findings indicating that the procurement process may not have complied with prescribed procedures.

Investigators are now following the money trail and examining the involvement of individuals and private entities allegedly linked to the tender. A legal entity allegedly connected to the arrested suspect has also been identified.

The investigation is probing potential financial prejudice to Mogalakwena estimated at about R45 million.

The suspect is expected to appear in the Mokopane Magistrate’s Court on Thursday.

The Hawks said the investigation was continuing and warned that further arrests were expected as investigators pursued outstanding leads.

The development follows the arrest in Gauteng of businessman Mpho Edward Malema, who is facing fraud, corruption and theft charges linked to an alleged R16 million Emfuleni fleet tender. The National Prosecuting Authority says Emfuleni allegedly paid Malema’s company for 18 vehicles, but only seven were delivered.

Former Emfuleni fleet manager Lerato Selaelo Mpholo is also accused in the case. The NPA alleges that Mpholo received R50,000 and other undisclosed payments from Malema in connection with the awarding of fleet procurement contracts. Mpholo was granted R25,000 bail.

The Hawks’ Limpopo provincial head, Major General (Adv.) Gopz Govender, said the latest arrest demonstrated that investigators would continue following the evidence and money trail.

“Every rand entrusted to a municipality carries the hopes and needs of the people it is meant to serve,” Govender said.

The Hawks urged anyone with information that could assist the investigation to come forward, assuring informants that information would be treated confidentially within the applicable legal framework.