Cape Town - A former municipal manager and chief financial officer (CFO) from Newcastle in KwaZulu-Natal appeared in the Durban Specialised Commercial Crimes Court on Thursday on charges of fraud, money laundering and contravention of the Municipal Financial Management Act (MFMA).
Former Newcastle municipal manager Bhekani Errol Mswane and CFO Bhekisisa Hlongwane and director of Bonakude Consulting (Pty) Ltd, Velenkosini Lindokuhle Mtshali are alleged to have siphoned R7.8 million.
According to the provincial spokesperson for the National Prosecuting Authority (NPA), Natasha Ramkisson-Kara the crime is alleged to have occurred between 2018 and 2019.
“The state is alleging that between 2018 and 2019, the men colluded to illegally extend an expired contract for Bonakude to provide consulting services to the municipality. It is also alleged that Mswane and Hlongwane contravened the MFMA by incurring irregular and wasteful expenditure.
“A further allegation is that Mtshali and Bonakude received the proceeds of the unlawful activities of Mswane and Hlongwane when they were paid for the non-existent contract,” Ramkisson-Kara said.
She said the trio was granted R20 000 bail each with conditions.
The court ordered the accused in the matter to surrender their passports and not to apply for any travel documents. They were also ordered not to enter the municipality premises until the matter against them has been finalised.
They are barred from making contact with any of the state witnesses in the matter before the court. Mtshali and his company were further ordered not to tender for work at the municipality until the trial had been finalised.