The acting Nelson Mandela Bay Municipal Manager Mvuleni Mapu has been accused of defrauding the Eastern Cape Department of Human Settlements out of close on R13 million.
Mapu together with Bulelwa Ntanga, the director of construction company Jeke and Qadi Trading CC, was arrested in the early hours of Friday morning.
According to the Hawks, the two allegedly colluded and tricked the Department into funding several RDP housing projects around Port Elizabeth to the value of nearly R13 million.
Captain Lloyd Ramovha of the Hawks says the Municipality acted as the developer of these projects and appointed contractors from its supplier database to do the work.
Ramovha says it is alleged that in 2014, Mapu interfered with the bid committee's process and ensured that the tender was awarded to Jeke and Qadi Trading CC construction company.
He said that Mapu in return allegedly received R900 000 from Ntanga for using his position of authority to influence the decision by the Bid Allocations Committee.
Both suspects have been charged with fraud and corruption and each granted bail of R20 000.
A spokesperson for the National Prosecuting Authority Anelisa Ngcakani says in terms of their bail conditions, they will be under 24-hour house arrest, they are not allowed to appear in any Nelson Mandela municipal buildings for the next 30 days and must not interfere with witnesses or the investigation.
The matter was postponed to the 3rd of November.
The Nelson Mandela Bay Metro has noted the arrest and will issue a statement in due course.
