Businessman Mcebisi Mlonzi, two directors of Avis car rentals and officials from the Alfred Nzo district municipality (ANDM) in the Eastern Cape are appearing before the Maxesibeni magistrate’s court in Mount Ayliff on Thursday, on charges of fraud, money laundering and corruption.
The Hawks received a tip-off from a whistleblower regarding the allegedly irregular awarding of a R75m contract for plant machinery, awarded between 2015 and 2018 by the ANDM to Mlonzi’s company, Kwane Capital.
Mlonzi, through his spokesperson Mzimasi Mlonzi, has vowed to defend himself, saying it is a politically motivated case to taint his image and that of his business.
“During the period between January 2015 and April 2018, ANDM paid an estimated amount of approximately R75m to the said business entity in respect of purported hire-purchase instalments. These payments were reportedly approved by municipal officials and electronically transferred into the business accounts of the service provider,” said W/O Ndiphiwe Mhlakuvana.
“Subsequent financial analysis revealed that the funds were systematically channelled through various bank accounts belonging to individuals and entities, involving a bulk of cash withdrawals and layered transactions indicative of money-laundering activities and inconsistent with legitimate business operations.”
There is no money laundering that is going to be proven. They are instituting the same proceedings with the same facts at different courts after losing at every other court
— Mzimasi Mlonzi, spokesperson for Mcebisi Mlonzi
The Hawks probe alleged that there was collusion between certain municipal officials, Kwane and third-party beneficiaries, “resulting in the fraudulent approval of invoices and misappropriation of public funds”.
Mzimasi told TimesLIVE the Special Investigating Unit (SIU) has been trying for years to recoup monies from Kwane Capital regarding the same contracts, but failed in civil cases.
“Kwane is being targeted in a political battle by certain individuals because Mlonzi is seen to be an ally to certain ANC individuals,” he said.
“There is no money laundering that is going to be proven. They are instituting the same proceedings with the same facts at different courts after losing at every other court.”
The only thing the company attempted to do was to assist municipalities in obtaining their own plant equipment at the end of the contract, he said.
“This formula was proven in other municipalities where there was no interruption by such spurious allegations. The municipalities benefited and have their own plant equipment.”
Mlonzi faced a similar charge in the Stutterheim magistrate’s court, which was later withdrawn, in 2021.
TimesLIVE
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