Ex-CFO, daughter granted R50k bail in Mpumalanga school repairs tender fraud

Some of the people arrested for their alleged involvement in the R113m Mpumalanga schools emergency repairs scandal. (Mandla Khoza)

A well-organised machinery where money meant to benefit children was squandered.

This is how a Mpumalanga magistrate described an alleged plot involving more than 40 people and companies implicated in a R113m schools emergency repairs scandal. Allegations are that tenders were illegally awarded and prices inflated.

On Monday the 33 accused arrested over the matter appeared at the Mbombela (formerly Nelspruit) magistrate’s court for bail.

Among those arrested is Absalom Thela, former acting CFO of the Mpumalanga department of education, who is now chief director for physical resources, as well as his daughter Palesa. The father and daughter told the court that they wanted to apply for bail on an emergency basis because they are sick.

Other arrested officials from the department include former acting HOD Jabulani Nkosi, as well as Mpumalanga businessmen. They were all arrested by the Hawks at their homes on Sunday morning, while others handed themselves in to the police on Monday as well.

They are accused of colluding with service providers in looting R113 m in what has been dubbed "schools emergency repairs”, where 20 schools had to be repaired in Mpumalanga.

When I listen to the prosecutor, I see that this was a very nicely organised machinery and the money was meant for our schoolchildren around the province

—  Magistrate Patrick Morris

They face charges of theft, money laundering and contravention of the Public Finance Management Act.

According to the Hawks, the officials handpicked companies. Payments would in some instances still be made despite no work having been done, and the monies would be moved to the accounts of relatives or the officials themselves.

Consolation Mdluli, who is wheelchair bound, was released on R5,000 bail after she pleaded poverty.

A breastfeeding mother was also released on bail.

On the other hand, Thela said he was sick and his release will be in the interest of justice. He also said he would attend all court proceedings.

His daughter Palesa also argued for a release on R5,000 bail, but the prosecutor, Prenisha Jagganath, said her company was at the centre of laundering the money; therefore, her bail amount needed to be high.

“She’s the daughter of Mr Absalom Thela and an owner of a company that was used to launder the money. The money would then be distributed to the accounts of government officials in the case. We therefore ask that the court give her a high amount of bail and all her travelling documents to be handed over,” said the prosecutor.

Magistrate Patrick Morris agreed with the state and awarded both Thela and Palesa R50,000 bail each.

“When I listen to the prosecutor, I see that this was a very nicely organised machinery, and the money was meant for our schoolchildren around the province,” he said.

“It is the court submission that it will be in the interest of justice for the accused to be released on bail. The conditions [are] that the accused not interfere [with] or intimidate witnesses and the accused to hand over her passport to the investigating officer. Bail is granted at R50,000.″

Bail application for the remaining suspects is expected to continue on Tuesday.

Outside the court, Mpumalanga Hawks head Maj-Gen Nico Gerber told the media that on Monday they managed to arrest three more suspects.


Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Comment icon