In April 2023, the Mbombela Special Commercial Crimes Court sentenced Mpendulo Sipho Mapalala to four years in prison for attempting to bribe an SIU investigator. He hoped to make a personal protective equipment (PPE) corruption investigation into Gugu Bulunga, a service provider for the Mpumalanga Department of Public Works (DPW), disappear.
Bulunga is among a group allegedly involved in a corruption network within the department.
On Tuesday this week, the National Prosecuting Authority’s Asset Forfeiture Unit (AFU), the SIU and the Hawks seized assets and properties worth around R52-million as a result of an investigation dating back to May 2020.
The Asset Forfeiture Unit of the National Prosecuting Authority, the Special Investigating Unit and the Hawks have seized various assets and properties of Mpumalanga government officials and service providers implicated Covid-era personal protective equipment corruption. (Photo: NPA)
The SIU’s initial investigation into Covid-related corruption revealed that between May 2020 and July 2021, Mpumalanga public works officials colluded with suppliers to defraud the department through tender processes.
The properties and assets are linked to 22 senior management officials, service providers and entities involved in the alleged corruption network. The operation involved serving orders at 34 locations and carrying out inventories at 29 properties. Thirty-one vehicles and a boat trailer were among the assets seized.
The AFU obtained a preservation order from the Mbombela High Court, allowing the seizure of assets in Mpumalanga, Gauteng, North West and the Western Cape.
The court order encompasses properties, electronics, cars, household items, jewellery, arms, ammunition, bank accounts and salaries. All internet banking privileges were removed from the accused.
Those affected are Mpumalanga public works officials Macdonald Sigudla, Dorries Mbatha, Bandile Ngcobo, Godisamang Molotsane, Kobus Mkhabela and Sipho Monareng.
The services providers targeted in the swoop are Maganeleni Trading and Projects (Pty) Ltd; Anthony Maganeleng Mashigo; Gladness Gugu Bulunga; Thandolwami Transport and Projects (Pty) Ltd; Mbombela Integrated Waste Management Services (Pty) Ltd; Orapaleng Molotsane; Tsidi Susan Sedibe; Superia Services Trading CC; Whisky Delisa Khumalo; Makulaspan Construction (Pty) Ltd; Thabang Lebo Andiswa Dibakoane; Ntando Ms Trading (Pty) Ltd; Bongani Edward Lukhele; Ligabho Le’Africa Properties (Pty) Ltd; Oratile Molotsane and Ezrom Molotsane.
Multimillion-rand tenders
According to a joint statement issued by the AFU, SIU and the Hawks, the SIU’s investigation into the PPE contracts revealed that senior management officials awarded multimillion-rand tenders to suppliers who failed to deliver.
It is claimed that these suppliers paid significant kickbacks to senior management officials and their families in various ways. The investigation also revealed numerous instances of corruption, fraud, theft and money laundering by senior managers and service providers involved in the procurement of PPE disinfection services.
The SIU forwarded its evidence to the NPA and Hawks for further investigation, resulting in the arrest of department officials and service providers.
The probe follows President Cyril Ramaphosa’s proclamation mandating the SIU to investigate allegations of corruption, maladministration, malpractice and payments made by state institutions relating to PPE procurement.
Mapalala spills beans
In April 2023, the SIU probe revealed that the DPW had hired a service provider in the 2017/18 financial year for pest control services. However, following the declaration of a national state of disaster, the contract was altered to include disinfection services in the Ehlanzeni District in Mpumalanga.
On 5 August 2021, the SIU interviewed Gugu Bulunga, a director of Mbombela Integrated, and Thandolwami Transport and Properties. She was questioned about payments made to and properties bought for government officials. Bulunga denied allegations of wrongdoing.
The SIU said that hours after the interview, Mapalala had called an SIU investigator to say that he was prepared to do anything to stop the investigation into Bulunga.
In his plea agreement, Mapalala wrote: “I knew it was wrong to provide money/payment to [the] investigator, as she was an official of the SIU and I gave this money to the SIU investigator to compensate the investigator and the ‘other’ people the investigator referred to, to compensate them to crush the involvement of Gugu Bulunga.
“I wanted to help Gugu to get out of the mess which caused her severe anxiety and the threat to her life. I therefore admit that I corrupted the SIU investigator and that my actions were unlawful and punishable.”
Mapalala was given a four-year prison sentence.
Connecting the dots
An investigation by Daily Maverick revealed that the current matter stems from a corruption, money laundering and fraud case registered in Nelspruit.
A source close to the investigation told Daily Maverick that between May 2020 and July 2021, Kebone Masange, an accounting officer for the DPW, had failed to comply with the Public Finance Management Act by authorising the deviation from normal procurement processes without first obtaining approval from the National Treasury. The contract involved the disinfection of the department’s offices in the Gert Sibande and Ehlanzeni Districts.
According to the source, an investigation showed that the DPW’s Bandile Ngcobo allegedly received certain benefits from Superia Services Trading, which was bidding for a tender from the Mpumalanga public works department.
“Superia Service Trading is owned by Tshidi Susan Sedibe. It is claimed that whenever Superia received funds from the department, it paid some of it to Ngcobo using Absa cash sent to Ngcobo’s cellphone number,” the source said.
Kobus Mkhabela, also from the DPW, is accused of benefiting from a company called Maganeleni Trading and Projects, which was bidding for a tender from the department.
Anthony Mashigo, the owner of Maganeleni Trading and Projects, is accused of corruption and money laundering.
Thandolwami and Mbombela Integrated are owned by Gugu Bulunga, who apparently has signing rights to Maganeleni’s bank account.
“Maganeleni Trading and Projects allegedly transferred funds from Public Works to Kobus Mkhabela Capitec bank account, as well as to Thandolwami and Mbombela Integrated.
“Bulunga, the owner of Thandolwami and Mbombela Integrated, is accused of sending money via FNB eWallet to Mkhabela’s cellphone number, as well as money to Mkhabela’s Capitec account,” said the source.
Another suspect, Sipho Monareng, allegedly benefited from a company known as Maganeleni Trading and Projects, a company which was bidding with Mpumalanga DPW.
“Maganeleni Trading and Projects, owned by Anthony Mashigo, has an allegedly corrupt relationship with Makhula Span, which is owned by Whisky Delisa Khumalo. Maganeleni would allegedly transfer money to Makhula Span, who would then have to transfer it to Monareng’s FNB account,” the source stated.
Furthermore, Mashigo is alleged to have had a corrupt relationship and money laundering scheme with Thandolwami and Mbombela Integrated Waste Management. Thandolwami and Mbombela Integrated are owned by Bulunga, who also has signing powers of Maganeleni Bank Account.
“Whenever Maganeleni Trading and Projects received money from DPW, Maganeleni would transfer some money to both companies and the companies would make payments to Molotsane and her immediate family,” according to the source.
Court appearance
According to a statement issued by the Mpumalanga Hawks, the matter of the 22 senior management officials, service providers and entities involved in the alleged corruption network has been referred to the Hawks’ Nelspruit office for further investigation.
Mpumalanga Hawks spokesperson Captain Dineo Sekgotodi said: “The investigation linked officials, suppliers and companies with the crime. A warrant of arrest was authorised by the court and executed on 28 September 2022.”
Macdonald Sigudla, Bandile Ngcobo and Sipho Monareng were arrested in October 2022 by the Hawks for fraud, corruption and money laundering. They were released on R10,000 bail each.
On Wednesday, 22 July, Monareng, Mashigo and Khumalo appeared in court. Their case was postponed to 9 September.
Several other accused will appear on 12 November. DM
Daily Maverick
www.dailymaverick.co.za
