Reporter : Simbongile Mdledle
The Gqeberha based Hawks recently embarked on a clean sweep intensifying crackdown on municipal fraud and contraventions of Municipal Finance Management Act (MFMA). This crime investigation unit has executed a decisive law-enforcement intervention which culminated in the arrest of Sandile Tervin Malusi (44), and Zenande Corporations, implicated in serious allegations of fraud and contraventions of MFMA. The accused and his business company were arrested last Tuesday, 03 February 2026 and appeared in court on the same day, where he was released on R2000 bail. Malusi and his entity are expected to appear again on 2 March 2026, before the Specialized Commercial Crime Court in Gqeberha.
According to the Hawks spokesman Warrant Officer Ndiphiwe Mhlakuvana, in March 2023, Malusi representing his business entity allegedly registered as a service provider and was awarded a Municipal contract for the servicing and maintenance of marine operational equipment. The servicing included power crafts and trailers, utilized at the Beach Office in Summerstrand, Gqeberha.
It further alleged that, notwithstanding the contractual obligations, the services were only partially rendered. Despite this material non-performance, a job card purporting full or adequate completion of the work was irregularly authorized. The authorization was ostensibly affected under instruction, of contravention of applicable financial controls, supply chain management prescripts, and governance frameworks. As discrepancies were picked up the matter was handed over to the Hawks.
The investigation confirmed the allegations that full payment of the contract value was processed and transferred into the service provider’s bank account, notwithstanding the incomplete execution of services. These actions were alleged to have directly undermined the stator responsibilities of the accounting officer, and compromised the integrity of Municipal procurement systems. The municipality was prejudiced by an amount of over R189 000.
