KSD Municipality Officials Charged with Fraud and Corruption in Tender Scandal

In a concerning turn of events at the King Sabata Dalindyebo Local Municipality (KSD) in the Eastern Cape, two individuals, Nondumiso Gwadiso, the Tourism Development Manager, and Luzuko Nobhongoza, a local service provider, were brought before the judiciary on serious charges of fraud and corruption.

Nondumiso Gwadiso, 49, and Luzuko Nobhongoza, 37, stood before the Mthatha Specialised Commercial Crimes court on August 6, 2024. The pair were taken into custody by the Mthatha-based Serious Commercial Crime Investigation division of the Hawks, paralleling their court appearance.

The case is rooted in a tender awarded by KSD to Lukholo AA Investments, involving the procurement of horseback racing equipment. The race, which was an event in the locality of Matyengqina, Mthatha, took place on December 3, 2023. Gwadiso’s role at the KSD Municipality was to oversee the procurement process right up to the delivery of the said equipment to the race victors, while Nobhongoza handled the operational aspects for the contracted company.

Despite being well-versed in the contractual agreement, both parties are accused of forming a collusion that betrayed the Municipality's trust. Reports indicate that they crafted a deal facilitating personal gain, outlined by a cash exchange amounting to R130,000, deviating markedly from the actual deliverable of horse race equipment costing R186,120.00.

It is further claimed that Gwadiso personally retained R50,000 while only providing equipment worth R80,000. Compounding the fraud, she is alleged to have furnished the Municipality with counterfeit acknowledgment documents misrepresenting the delivery of the full order. Subsequently, Nobhongoza is said to have submitted an invoice for the total cost of equipment as per the original tender specifications.

Following discrepancies noted in the invoice, an investigation by the Hawks was triggered. The inquiry concluded that the accused had engaged in forgery and submission of fraudulent documents to improperly charge the KSD Municipality, which was at risk of incurring a loss exceeding R180,000.

Both accused were granted bail at R5,000 each after their initial appearance and are awaiting the setting of a trial date, which is tentatively scheduled to proceed on October 7, 2024.

The legal confrontation signals a strong message against corruption and fraud within the municipal framework. The allegations attest to a disappointing breach of ethics and responsibility by individuals entrusted with managing public resources and affairs.

The community of King Sabata Dalindyebo, alongside municipal mechanisms, now watches closely as judicial processes unfold, seeking justice and accountability.