Former Mnquma official arrested for tender fraud

An attorney representing a former senior Mnquma municipality official has labelled the charges against his client, “nonexistent”.

Zanemvula Ngovela, 55, an employee of the transport department and former King Sabata Dalindyebo (KSD) municipality technical service director, was charged on Tuesday morning after he handed himself over to the police at the Mthatha Central police station.

He is Mnquma’s former director of infrastructure and is accused of corruption and contravention of the Municipal Finance Management Act.

He was granted bail of R10,000 after a brief appearance in the Mthatha specialised commercial crimes court.

He is represented by seasoned attorney Mvuzo Notyesi.

Two other accused, Soundrarajan Pillay, 69, a director of Pillay Construction, and Kubeshin Pillay, 42, a director of Brainwave Projects, both from Kwazulu-natal, were charged with fraud along with their respective companies, Hawks spokesperson Captain Yoliswa Mgolodela confirmed.

When the Dispatch team arrived at the police station shortly after 8am, the three men were already inside.

On Tuesday, Mgolodela said the Pillays are alleged to have formed a joint venture to make one service provider through their company, Siva Pillay, which won a municipal tender.

The businessmen, represented by advocate Apla Bodlani, were also released on R10,000 bail.

Their arrest related to an R18m tender to rehabilitate roads in townships in Mnquma municipality in the 2011-2012 financial year. The tender cost escalated to R36m.

The Dispatch reported last month that Ngamela Pakade, then Mnquma municipal manager at the time of issuing of the tender, and who is now employed as KSD’S municipal manager, was arrested by the Hawks on charges of four counts of contravening the Municipal Finance Management Act.

Ngovela joined Pakade, who is out on R20,000 bail, in the dock. Notyesi called for the case to be postponed to January 18 for representations in respect of the charges against Ngovela, a police docket and the list of witness.

A representation is an appeal submitted to the National Prosecuting Authority if an accused is dissatisfied with the decision to prosecute a case, or with

Their arrest related to an R18m tender to rehabilitate roads in townships in Mnquma municipality in the 2011-2012 financial year. The tender cost escalated to R36m

the manner in which the prosecutor has dealt with the case.

The state is represented by advocate Mthuthuzeli Rangula.

Rangula told the court the charges against Ngovela represented a schedule 5 offence.

Notyesi said: “These allegations are non-existent. Obviously we will be making representations in respect of the charges.

“We will demonstrate in those representations that there is no case in respect of [Ngovela].”

The Pillays were called to the dock after the former senior official’s case was concluded. The state and defence agreed on R10,000 bail for each.

Mgolodela previously told the Dispatch that procurement and supply chain management processes were allegedly not followed in the award of the tender.

On the sidelines, Mgolodela said the arrest of the latest accused was the second leg of the investigation “where we are bringing forward the director for infrastructure who initiated the process for this tender”.

“The tender escalated to R36m due to specifications given by the service provider at the time.

“They are alleged to have brought forward invalid tax certificates and also submitted construction industry development board certificates that purported to show they had experience in the road construction business.

“As a result they scored high points at the bidding process and were thus awarded the tender.”

Mgolodela said more arrests would be made, but declined to give any details.

“There are more people that are involved in the tendering process.

“Possibly even during court proceedings of those who are already in, there might be some information that might come up and lead to the arrest of more than we think might be the number,” she said.

The four accused will be back in the dock on January 18.

The tender escalated to R36m due to specifications given by the service provider at the time