A former senior municipality official who resigned and then allegedly opened a company under his wife’s name to score a R38m tender from his employer is one of 10 people who have been arrested by the Hawks for alleged fraud and corruption.
The man, his wife and eight Molemole municipality employees are at the centre of the R38m tender that was allegedly irregularly awarded and where R2.2m was reportedly paid before any work began or a service level agreement was signed.
It is alleged that the company did not finish the work, yet received R38m.
The 10 accused, aged between 35 and 60, appeared in the Senwabarwana magistrate’s court on Friday on charges of fraud and corruption and are expected back on Wednesday for a bail application.
Sources in the municipality said the company, Sef-Mod, was awarded the tender in August 2024 to construct a landfill site.
“The tender was initially rejected for not meeting the requirements, but it was later approved under questionable circumstances,” a source said.
[It is alleged that] fictitious documentation was used during the procurement process.
— Col Avele Fumba
The source alleged that the chairperson of the bid evaluation committee approved the tender despite its rejection by the committee.
“The evaluation chairman allegedly forged signatures to push the tender through and ensure it was awarded,” the source said.
“Suspicions were raised when an amount of R2.2m was reportedly paid into the former employee’s account just one month after the tender was awarded, before any work had commenced and prior to the signing of a service level agreement,” the source claimed.
The Hawks were then brought in to investigate.
The tender was not frozen while the investigations were being conducted. Sef-Mod kept being paid, and by the time the Hawks made the arrests on Friday, the municipality had already lost R38m, yet the landfill site had not been completed.
Limpopo Hawks spokesperson Col Avele Fumba said preliminary investigations suggest that proper procurement procedures were not followed, potentially contravening the Municipal Finance Management Act.
“It is further alleged that a service provider was paid prior to the signing of a service agreement and that fictitious documentation was used during the procurement process,” Fumba said.
“All accused remain in custody, and their identities have not yet been disclosed due to ongoing investigations,” said Fumba, who added that further arrests are expected.
DA ward councillor Calvin Matje said the arrests confirm long-standing concerns about irregular and questionable tender processes in the municipality.
“The level of corruption within Molemole municipality was also raised by the auditor-general in a 2024/25 report, but was ignored by ANC mayor Masilo Paya,” Matje said.
Paya said he could comment until the 10 have applied for bail, as he does not know what charges they are facing.
Matje also cited the electrification of Matseke Extension, where he claimed a contractor was allegedly paid R2 million before completing the project.
He also said a R238,500 training tender was awarded to a service provider reportedly in arrears with rates and taxes at the Ekurhuleni municipality, which may contravene supply chain regulations.
The arrests have left the municipality’s administration strained, with several newly appointed senior managers still in office while others remain in custody, said Matje.
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