Ninth suspect in R9.3m Eastern Cape land claims fraud case arrested

A female suspect tied to a land claims fraud case has been released on R10 000 bail following her arrest on Wednesday.

The 46-year-old appeared in the East London Magistrate’s Court on Thursday and is due back in court with her co-accused on 19 February.

Lungela Malusi was apprehended in George this week and will join eight others in the dock to face accusations related to defrauding land claim beneficiaries.

Altering of beneficiary details

The Hawks arrested the other eight accused, aged between 25 and 56, on 21 September following an investigation by its serious corruption unit.

The accused are Funeka Malusi, a former director at the East London Department of Rural Development and relatives who benefited from the alleged fraud between 2017 and 2024.

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The director and the others are accused of colluding to defraud the department and land claim beneficiaries by processing fraudulent land claims and altering the details of legitimate land claimants.  

“Investigations divulged that several payments were made to the relatives rather than to the lawful beneficiaries, thus prejudicing the department to the value of more than R9.3 million,” confirmed Eastern Cape police spokesperson Warrant-Officer Ndiphiwe Mhlakuvana.

No payment for land claims

The director was released on R30 000 bail in September, while the relatives who were alleged to have received the payments were released on R10 000 bail.

Investigations suggest that none of the rightful beneficiaries of the land claims, whose names and details were substituted, received any payment.  A complaint from one of the aggrieved land claimants prompted the investigation.

Hawks’ Eastern Cape acting provincial head Brigadier Fernando Luis commended the tenacity of the investigators.

“As the Hawks, we shall investigate and arrest all corrupt people without fear and favour,” stated the Brigadier.

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