BCM
An ANC councillor in Buffalo City Municipality appeared in court on Tuesday alongside a businesswoman on charges of fraud and money laundering amounting to R1.2 million.
The National Prosecuting Authority said that 58-year-old councillor, Mthetheleli Kolela and 40-year-old catering company owner, Noxolo Tshaka, were arrested by the Hawks earlier in the day.
NPA spokesperson, Anelisa Ngcakani, said the matter relates to the 40th-anniversary celebrations planned for the Phakamisa Township in Qonce (KWT) scheduled for December 2019.
Tshaka’s catering company was awarded the contract for the event by BCM's sponsorship committee.
Ngckanai said on 3 December 2019, Tshaka opened a First National Bank (FNB) account for the sole purpose of receiving the sponsorship money from Buffalo City Municipality.
“On 13 December 2019 BCM paid R840 000 into the FNB account. The following day the money was transferred to another FNB account to which Tshaka was a signatory. It is alleged that on 19 December 2019 a cash withdrawal of R544 783.80 was made in favour of Kolela,” she said.
Ngcakani said nine days later, BCM paid R360 000 into the FNB account which was opened by Tshaka on 3 December 2019.
She said the pair were granted bail of R3000 each and the matter postponed to Wednesday in order for a court date to be set.
