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Eastern Cape Local Government MEC, Mlibo Qoboshiyane, has welcomed the arrest of a municipal official in Mbizana on charges of fraud.
Qoboshiyane says local municipalities must be centres of excellence not of fraud and corruption.
He was commenting on the arrest of the Alfred Nzo Municipal official last week by the Hawks for allegedly defrauding the municipality of R12.5m.
Qoboshiyane said municipal employees must decide if they want to be business people or municipal employees, adding that they can't be both.
The Hawks say he allegedly facilitated the awarding of a tender to install electricity in surrounding villages to a certain company.
Police captain Paul Ramaloko says the winning company, in turn, appointed the director's own company as a sub-contractor for the project.
Ramaloko says no electricity has been installed in the villages in and around the municipality, situated in Mbizana.
Ramaloko said a six-month investigation has led the arrest and more arrests are expected soon.
The official, who has not yet been identified, is due in court on Monday.
