Contractors, Project Manager Charged With R9m Bid Fraud Released On Bail



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Two Eastern Cape contractors and a municipal project manager charged with fraud, theft, corruption and money laundering involving R9 million were released on bail in Butterworth Magistrates Court on Friday.

The project manager, Phaphama Ntswanti, 38; Wonga Malusi, 45 years old; and Chuma Matoti, 52, each received a bail of R10,000.

They were arrested on Friday after they were allegedly linked to a tender by the local Mnquma municipality for the paving of streets in Ngqamakwe in August 2013.

“Municipal officials and the project manager allegedly signed payment certificates to the four companies for services that were not provided.

“The municipality lost over R9.1 million, the project budget available at the time. The Hawks’ investigation further revealed an overspending of R982,000 by the project,” said Hawks spokesman, Captain Lloyd Ramovha.

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He said two others have not been arrested. They are under quarantine in Gauteng and Cape Town due to Covid-19.

“They will be arrested once the quarantine processes are complete,” Ramovha said.

The defendants are expected to appear in the same court on November 2, 2020.

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