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The Hawks said that the Director of Water and Sanitation in the OR Tambo District Municipality, Andile Vellem, and Project Manager, Mawethu Mthengwana, appeared in court on Monday in connection with alleged fraud in the amount of R168 million.
Hawks Eastern Cape spokesperson, Captain Yolisa Mgolodela, said the two were arrested on Monday on charges of fraud, corruption, and contravening the Municipal Finance Management Act, and the Prevention of Organised Crime Act.
She said a co-accused, the former Municipal Manager, Owen Hlazo, died in 2021 while a fourth suspect is still at large.
Mgolodela said the arrests stem from an investigation into a Covid19 project where clean water was due to be delivered to villages in the OR Tambo District and for which tenders were awarded for the construction of water reservoirs.
She said the Hawks received a complaint in June, 2020 of alleged “irregularities regarding certain contracts, irregular payments, payments for services not rendered.”
“Some businesses were allegedly given loans upfront and services ended up not being rendered,” Mgolodela said, adding that the OR Tambo District Municipality “was prejudiced cash to the value of more R168 million.”
Vellem and Mthengwana appeared in the Mthatha Specialised Commercial Crimes Court and were released on R10 000 bail each and matter postponed to 29 August.
She said more arrests were imminent.
