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Ngqushwa local municipality high ranking officials released on bail

Media Statement
Directorate for Priority Crime Investigation (HAWKS)

EASTERN CAPE - Misiwe Phyllis Mpahlwa (54) former Ngqushwa Local Municipal Manager, Mkhuseli Wiseman Mxekezo (49) the existing Director of Corporate Services, Tinus Matthysen (66) former Acting Chief Financial Officer (CFO) of Ngqushwa Local Municipality were released on R1000 bail each by the Peddie Magistrates' Court on 01 October 2021. This is subsequent to their arrest by the East London based Hawks' Serious Commercial Crime Investigation team for allegations of fraud, corruption and contravention of Municipal Financial Management Act (MFMA).

It is alleged that Mxekezo deliberately or negligently created an irregular expenditure by signing a memorandum dated 11 December 2019 for an event that would be held on the 12 December 2019 without procurement processes  being followed for an amount of more than R273 000 for a Christmas event for the elderly people of the Peddie community.

It is further alleged that Matthysen failed to prevent the irregular, unauthorised fruitless and wasteful expenditure by approving payments to service providers without necessary documentation while he was on leave. Matthysen is reported to have been complying to the instruction for him to effect the payment by the municipal manager at the time, Misiwe Mpahlwa.

The arrest of the trio is subsequent to the arrest of Busisiwe Mfunda (34) on 29 July 2021 who also appeared at the Peddie Magistrates' Court on the same day and was released on a R1000 bail. Mfunda is alleged to have signed a memorandum as an applicant requesting for procurement of goods and services for the said Christmas event. It is further alleged that after approval, she went on to source the quotations from various fictitious service providers for her personal enrichment by bypassing the supply chain office.

Mfunda will thus be joining her co-accused at the same court on 6 October 2021 pending further investigations.


Captain Yolisa Mgolodela
071 481 2429