Accused face fraud, corruption, and money laundering charges in the Mount Ayliff court
Nine individuals have been arrested and two business entities are under investigation in connection with an alleged irregular “yellow fleet” procurement contract worth R75 million involving Kwane Capital (Pty) Ltd and the Alfred Nzo District Municipality (ANDM).
The accused appeared in the eMaXesibeni Magistrates’ Court in Mount Ayliff, facing charges of fraud, corruption, money laundering, and contravention of the Municipal Finance Management Act (MFMA). Each was granted bail of R10,000.
What the “yellow fleet” contract was meant to deliver
The “yellow fleet” at the center of the case refers to municipal service vehicles meant to strengthen daily operations across the district. The procurement included six trucks, six sprinkler water tankers, and three jet vacuum tankers intended for water supply, sanitation, and infrastructure support.
For communities that depend on functioning municipal services, fleets like these are not just equipment on a spreadsheet. They are meant to be working solutions that show up when water runs short, when sanitation systems fail, and when infrastructure needs urgent support.
SIU probe and referrals to the NPA
The arrests follow referrals by the Special Investigating Unit (SIU) to the National Prosecuting Authority (NPA) after the SIU said it uncovered evidence of serious maladministration and corruption during an investigation conducted under Proclamation R36 of 2017.
In line with its mandate, the SIU refers evidence of alleged criminal conduct to the NPA for possible prosecution. It can also pursue civil proceedings aimed at correcting wrongdoing and recovering state losses, including funds paid for services not rendered.
Who is accused
Those named among the accused include Mcebisi Rudolf Mlonzi, director of Kwane Capital, and Bambangazibini Tabata, a Kwane Capital employee. Former ANDM officials listed include Xolani Masiza, Paul Mahlasela, and Zuko Mani.
The case also references Clive Else and Shawn Govender, described as former employees linked to Avis and Barloworld. Also listed are Monalitho Muba and Xola Bomela, together with their company, Chumani Water Solutions.
What investigators allege happened
According to information attributed to the SIU’s findings, the municipality allegedly paid R75 million to Kwane Capital without budget approval and in contravention of municipal supply chain rules, including Regulation 32 of the Municipal Supply Chain Management Regulations.
Investigators further allege misrepresentation around vehicle ownership, including the unlawful use of the name of Avis Fleet, which is said to have induced the municipality into contracts described as invalid and unlawful.
The investigation also flagged alleged irregularities involving vehicle licensing and roadworthiness, with claims that roadworthy certificates were issued despite GPS data suggesting the vehicles never attended testing stations.
The SIU has estimated the municipality suffered an actual or potential loss of R60.7 million, citing alleged overcharging and excessive profit margins.
Civil recovery bid in the Special Tribunal
Beyond the criminal case, the SIU has instituted civil action in the Special Tribunal to review and set aside the contract and recover losses allegedly suffered by the municipality.
The matter returns to court as investigations and prosecution preparations continue, with the case expected to unfold further as evidence is presented.