Eastern Cape Municipal Chief Arrested for R4.8m Covid-19 Relief Fund Fraud



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The Hawks have arrested more senior government officials who are allegedly linked to fraudulent activities.

The Hawks have arrested more senior government officials who are allegedly linked to fraudulent activities.

Tiro Ramatlhatse, Gallo Images, Sowetan

  • Phumzile Johnson Gwadiso from OR Tambo Township appeared in court on Friday, where he was granted bail of 50,000 rand.
  • The Hawks say Gwadiso allegedly colluded with a businesswoman who was previously arrested for charging millions for non-existent Covid-19 awareness work.
  • The businesswoman is currently out on bail of R20,000 and is expected to return to court on January 25, 2021.

OR Tambo Municipal Whippery Services Manager, Phumzile Johnson Gwadiso, has been arrested for alleged bid fraud by the Covid-19 Relief Fund worth more than R4.8m.

The 48-year-old appeared in Mthatha Magistrates Court following his early morning arrest by the Hawks Serious Corruption Crimes Investigation team.

The Hawks said that Gwadiso’s arrest was preceded by the arrest of Ms. Pumza Poshee Gambula, a 48-year-old director of the company, who was arrested on October 22 in the same case.

The Hawks’ national spokesman, Colonel Katlego Mogale, said that the investigation conducted in partnership with the Special Investigation Unit (SIU) revealed that Gambula submitted fraudulent documents to several municipalities, allegedly having conducted door-to-door awareness campaigns for prevention and containment of the Covid. -19 pandemic, to the rural communities of the local municipalities of Port St Johns Local, King Sabatha Dalindyebo and Mhlonto.

Mogale added that a further investigation has revealed that the arrested municipal chief allegedly colluded with Gambula.

“He allegedly signed invoices for payments confirming that the campaign was carried out, this allowed the payments to be processed to the supplier,” Mogale said.

Gwadiso was granted bail of 50,000 rand and the matter was postponed until 25 January.

Meanwhile, Gambula is also expected to return to court on January 25. She is out on bail of R20,000.

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