Authorities arrested nine suspects on 11 February 2026 in connection with alleged Eastern Cape tender fraud, corruption, and money laundering. The case centres on a tender awarded by the Alfred Nzo District Municipality (ANDM) for yellow plant machinery. The Hawks' Serious Corruption Investigation and Serious Commercial Crime Investigation units, along with other agencies, made the arrests across various locations, including outside the province.

The suspects include former ANDM senior officials, employees from Avis, and a businessman, aged between 43 and 73. Two corporate entities also face charges. Investigations revealed that ANDM paid approximately R75 million to the implicated business entity from January 2015 to April 2018.

Background and Investigation Details

The probe began after a whistle-blower reported irregularities in the procurement process for appointing a service provider at ANDM. According to Hawks spokesperson Warrant Officer Ndiphiwe Mhlakuvana, the company lacked the required yellow plant machinery and equipment when awarded the contract, relying instead on leased assets from third parties.

In December 2014, one suspect allegedly proposed a hire-purchase arrangement for the machinery without following supply chain management processes. This exploited Municipal Finance Management Act (MFMA) regulations via an existing contract with another municipality. The company had a full maintenance lease with Zeda Car Leasing (Pty) Ltd, trading as Avis Fleet Services, signed on 13 June 2014, where ownership remained with Avis.

ANDM entered a hire-purchase agreement in January 2015, aiming to acquire ownership. However, the service provider misrepresented equipment ownership. Payments were approved by officials and transferred to the business, with funds later channelled through accounts, involving cash withdrawals and layered transactions suggesting money laundering. Mhlakuvana stated the investigation uncovered collusion among officials, providers, and beneficiaries, leading to fraudulent invoice approvals and fund misappropriation. "It is further alleged that identified officials within ANDM directly and indirectly benefited from the scheme, which is believed to have operated as a criminal syndicate entrenched within municipal structures," he said.

Responses

Hawks Provincial Head Major General Mboiki Obed Ngwenya commended the team for their work in holding perpetrators accountable. No responses from the suspects or involved entities were available at the time of publication. Attempts to contact them for comment went unanswered as of 11:02 SAST on 12 February 2026.