Former Newcastle municpal manager, Bhekani Errol Mswane, former chief financial officer, Bhekisisa Hlongwane, and Velenkosini Lindokuhle Mtshali the director of Bonakude Consulting (Pty) Ltd appeared in the Durban Specialised Commercial Crimes court yesterday.
All four are charged with fraud, while Mswane and Hlongwane both face an additional charge for contravening the Municipal Finance Management Act (MFMA). Mtshali and his company, Bonakude, face an additional charge of money laundering.
Natasha Ramkisson-Kara, Regional Spokesperson for the National Prosecutors Association, released a statement earlier today (September 30), stating that at the time of the offence, Mswane and Hlongwane were employed at the Newcastle Municipality as municipal manager and chief financial officer, respectively, and Mtshali was the sole director of Bonakude Consulting, a consultant to the municipality.
The state claims that the men conspired between 2018 and 2019 to illegally extend an expired contract for Bonakude to provide consulting services to the municipality.
“Mswane and Hlongwane are also accused of violating the MFMA by incurring irregular and wasteful expenditure. Another allegation is that Mtshali and Bonakude received the proceeds of Mswane and Hlongwane’s illegal activities when they were paid for the non-existent contract,” said Ramkisson-Kara.
The accused were each granted R20 000 bail with the following conditions:
- They have to give up their passports
- They make no application for new travel documents
- They refrain from entering the municipality until the trial is completed.
- They do not contact state witnesses
- Mtshali and his company are not permitted to tender for municipal work until the trial is completed.
The accused will once again appear before the Durban Specialised Commercial Crimes Court on November 1.
Read the full exposé in next week’s edition of the Newcastle Advertiser.
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