Hawks arrest three over R1,5m Govan Mbeki municipal fraud
A service provider, a former municipal official and a pensioner face fraud and corruption charges over goods and services allegedly never delivered.
The Hawks in Mpumalanga have arrested three suspects in connection with an alleged fraud and corruption scheme at Govan Mbeki Local Municipality, in which a service provider was allegedly paid more than R1,5 million for goods and services that were never rendered or delivered.
The suspects are 46-year-old Brutus Hlophe, a service provider, 48-year-old Caiphus Ndimande, a former municipal official who was expelled from the municipality, and 65-year-old Henry Swart, a former municipal employee who is currently on pension. Hlophe and Ndimande were arrested on Tuesday, 6 October 2026, during an operation by members of the Secunda Serious Commercial Crime Investigation. Swart was arrested on Wednesday, 7 October 2026, after he handed himself over to the Hawks.
The investigation stems from allegations that the service provider invoiced Govan Mbeki Local Municipality on 5 December 2022 for goods and services allegedly not rendered or delivered. The municipality made payment on 9 December 2022.
Preliminary investigations revealed that the service provider had been appointed to the municipality’s panel of service providers in June 2021. The appointment stipulated that quotations would be requested on a rotational basis, as and when required, through the municipality’s Supply Chain Management processes. It further required a Service Level Agreement to be concluded between the service provider and the municipality. Investigators established that the prescribed procurement processes were allegedly not followed.
Warrants of arrest were subsequently authorised for the three accused persons. The company, J Mabhengu Construction and Transport (Pty) Ltd, represented by its director, Hlophe, is also cited as an accused entity in the matter.
The three accused persons, together with the company, appeared before the Evander Magistrate’s Court facing charges of fraud and corruption in terms of the Prevention and Combating of Corrupt Activities Act. Hlophe and Ndimande appeared in court on Tuesday, 7 October 2026, while Swart appeared on Wednesday, 8 October 2026. They were all remanded in custody pending their next court appearance on Thursday, 8 October 2026, for a formal bail application.
The investigation is being conducted by the Secunda Serious Commercial Crime Investigation.
The Directorate for Priority Crime Investigation Provincial Head in Mpumalanga, Major General Nico Gerber, said the Hawks remain committed to pursuing allegations of corruption and fraud involving public institutions and will continue working to ensure that those entrusted with public resources are held accountable.
“Public funds must be protected and utilised lawfully for the benefit of the communities they are intended to serve,” General Gerber said.
Source: South African Police Service (SAPS), https://www.saps.gov.za/newsroom/msspeechdetail.php?nid=71660
