Image created by AI
In a significant development in the fight against corruption within local governments, Mxolisi Evidence Hadebe, aged 46, and Luthando Mpangeva, aged 38, former employees of Dr Pixley Ka Isaka Seme Local Municipality in Mpumalanga, were sentenced to prison for fraud and money laundering. The sentencing occurred at the Middelburg Specialised Commercial Crimes Court on Friday, November 22, 2024.
The case stemmed from an investigation led by the Hawks' Middelburg Serious Corruption Investigation unit, which began after allegations of financial misconduct were reported by the municipality's former Chief Financial Officer in June 2020. The investigation revealed a dubious transaction between the municipality and Evoke Trading (Pty) Ltd, a service provider appointed by the municipality. It was discovered that substantial payments were made to Evoke Trading without any corresponding service or work being delivered.
Further investigation indicated that Mxolisi Hadebe, who confirmed that the work was supposedly completed, and Luthando Mpangeva, who was responsible for the project management, orchestrated fraudulent invoices which were subsequently paid by the municipality. This malpractice resulted in a direct financial loss of R127,974.25 to the municipality.
The duo was initially found guilty on a total of six charges by the same court on October 21, 2024. The court session for their sentencing on November 2024 eventually led to both Hadebe and Mpangeva being convicted on five counts of fraud and one count of money laundering. Each was sentenced to two years imprisonment for each count, as decreed under section 280(2) of the Criminal Procedure Act 51 of 1977, with the court ruling that the sentences would run concurrently.
This case highlights ongoing efforts and the seriousness of legal mechanisms in South Africa in addressing and penalizing corruption and financial malpractices within public sector operations. The sentences aim to serve as a deterrent to any municipal officials contemplating similar fraudulent activities, emphasizing the law's tightening grip on corruption.