Businessman and former municipal manager out on bail for R92m fraud
Businessman Mcebisi Rudolf Mlozi, 48, appeared in the Stutterheim Magistrate's Court on Monday for alleged fraud amounting to R92m.
Mlozi is a director of Kwane Capital. His co-accused, Balisa King Socikwa, 57, is a former Amahlathi local municipality manager.
Eastern Cape Hawks officers led a multidisciplinary task team that pounced on the two in the early hours of Sunday morning - Mlozi in Qumbu, in the Eastern Cape, and Socikwa in Sandton, Johannesburg.
Mlozi was granted R50,000 bail, while Socikwa is out on R30,000 bail.
"Crime Intelligence and detectives formed part of the task team, which is tasked to investigate fraud and corruption in the Eastern Cape. It is alleged that during September 2013, Kwane Capital was awarded a R31m contract by the Port St Johns local municipality to supply machinery.
"The Amahlathi local municipality initiated a Regulation 32 appointment. The appointment saw, during April 2014, Socikwa allegedly signing on behalf of the municipality a lease agreement with Mlozi for the purchasing of yellow plant machinery valued at R92m," said Hawks spokesman Brig Hangwani Mulaudzi.
The investigation revealed that the terms of the contract had been flouted.
"They both face charges of fraud and several contraventions of the Municipal Finance Management Act. Investigations are still continuing," added Mulaudzi.