Eastern Cape Hawks have arrested MK Party MP Mandlenkosi James Matutu and a municipal official, Thembelani Ngceba, on charges of fraud, corruption and money laundering linked to losses of more than R1.6 million at the Joe Gqabi District Municipality.
The arrests were made on Tuesday in Barkly East, Eastern Cape.
Hawks spokesperson Warrant Officer Ndiphiwe Mhlakuvana said the Komani-based Serious Commercial Crime Investigation unit, working with the National Prosecuting Authority, executed warrants of arrest as part of an ongoing probe into complex financial crimes.
Mhlakuvana said the arrest marked a significant development in the fight against corruption and complex financial crimes.
Matutu, who is a member of parliament for former President Jacob Zuma’s uMkhonto weSizwe Party is the sole director of Vukabalele Trading CC and Zim-Zet Trading (Pty) Ltd.
Ngceba serves as a water supply manager at the municipality.
Both men appeared in the Barkly East Magistrate’s Court on the day of their arrest. They were each granted bail of R5,000.
The case was postponed to May 5, 2026, for the appointment of legal representation and further investigation.
Mhlakuvana said, “The accused are facing charges of fraud, corruption, and money laundering.”
He said the charges stem from a public procurement process initiated on December 1, 2019, when the municipality advertised a tender for the procurement and installation of water pipes for the Ugie community. The contract was awarded to Vukabalele Trading CC.
“Futher reports revealed that the procurement process was deliberately manipulated through fraudulent and collusive conduct involving both the service provider and certain municipal officials, entrusted with fiduciary responsibilities,” Mhlakuvana said.
He said officials acting as end-users in the transaction allegedly certified fraudulent delivery notes and invoices, falsely confirming that the water pipes were received.
“As a result of such activities the municipality reportedly effected full payment to the service provider, despite the complete non-delivery of the goods,” he said.
“Further allegations uncovered a pattern of financial transactions indicative of money laundering and illicit enrichment.”
“Funds were apparently channelled through various accounts, including transfers to Zim-Zet Trading (Pty) Ltd, an entity solely directed by the principal accused, as well as to his personal account.”
A case docket was opened and referred to the Hawks for investigation.
“The investigation further established that certain municipal officials were involved in the processing and authorisation of payments received undue financial gratification from the service provider,” Mhlakuvana said.
“Meticulous investigation by the Hawks confirmed the allegation and exposed that the municipality suffered a financial loss of over R1.6 million, which culminated in the arrest of the accused and business entities on March 24, 2026.”
Meanwhile, Eastern Cape Hawks head Major General Mboiki Obed Ngwenya commended investigators for their work.
He said it demonstrated the agency’s commitment to ensuring that those implicated in corruption face the law.
