Nine people, including Nelson Mandela Bay politicians, business people and a lawyer, appeared in the Port Elizabeth magistrate’s court on Friday charges of fraud, corruption and money-laundering.
The accused are Mhleleli Mlungisi Tshamase, Walter Shaidi, Fareed Fakir, Rukaard Abrahams, Andrea Joleen Wessels, Nadia Gerwel, Dawid Eduard Le Roux, Zandisile Qupe, and Thando Ngcolomba.
Mongameli Bobani, who passed away from Covid-19 was the 10th accused.
The arrests relate to the 2010 Integrated Public Transport System project and also includes six business entities which were also charged.
The Hawks say that the money laundering exceeds an actual loss of R56.4 million while the potential loss would have been around R200 million.
The accused were granted bail ranging from R5 000 to R100 000 and the matter postponed to March next year.
The Hawks allege that the suspects operated a syndicate with a common purpose to unlawfully circumvent the prescribed procurement processes to irregularly and fraudulently benefit specific suppliers or consultants.
It is further alleged that influential office bearers colluded with municipal officials and controlled decision-making in the appointments of specific persons in critical municipal posts.
Lieutenant Colonel Nkwalase says this was done to influence procurement processes as well as the appointments of entities willing to advance the interests of the syndicate.
The alleged objective was to ensure a steady stream of unlawful payments from the Municipality to members of the syndicate where the funds were distributed to other syndicate members.
Lieutenant Colonel Nkwalase says Friday's arrests form part of the second part of their investigation into the IPTS fraud.
The NPA says more charges could be added.
