Nine accused persons and two business entities appeared before the EmaXesibeni (Mt Ayliff) Magistrate Court for fraud, corruption, money laundering, and contravention of the Municipal Finance Management Act (MFMA), Thursday 12 February 2026. The charges relate to a R75 million yellow and white fleet lease agreement between Kwane Capital and the Alfred District Municipality (ANDM).
The accused were arrested on 11 February 2026, some from outside the province which include KwaZulu-Natal, Gauteng and Western Cape. They were nabbed by the Hawks’ Serious Corruption Investigation (SCI) and Serious Commercial Crime Investigation (SCCI), in collaboration with Tactical Response Team (TRT) and National Intervention Unit (NIU). All the nine accused briefly appeared before the EmaXesibeni magistrate court and the matter was postponed to 30 April 2026 for enrolment in the Mthatha Specialized Commercial Crime court and all of them were granted bail of R10 000 each.
The accused include Kwane Capital director Mcebisi Rudolf Mlonzi, company employee Bambangazibini Tabata; former ANDM senior officials Xolani Masiza, Paul Mahlasela and Zuko Mani; and former Avis and Barloworld employee Clive Else, and Shawn Govender. They appeared alongside Monalitha Muba and Xola Bomela, as well as their business entity, Chumani Water Solutions, who were also released on the same bail conditions. It was reported that Kwane Capital entered into the contract with the Alfred Nzo District Municipality (ANDM) from 2015 to 2018.
The investigation revealed an alleged elaborate scheme in which Mlonzi misrepresented Kwane Capital as the legitimate owner of vehicles, plant machinery, and equipment when the lease contract was awarded. It is alleged that the company instead relied on hired or leased assets sourced from third-party service providers, namely Avis and Barloworld.
It is further alleged that senior ANDM officials received gratifications to contravene provisions of the MFMA in furtherance of the unlawful contract. Former officials from Avis and Barloworld allegedly participated in the scheme to favour Kwane Capital and received payments for their roles.
