Home News Acting NC municipal manager and co-accused in court for fraud

Acting NC municipal manager and co-accused in court for fraud

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The two are accused of defrauding the Ubuntu Local Municipality by doing business without following proper tender processes.

CASE: Fraud charges

THE ACTING municipal manager of Ubuntu Local Municipality, Xolani Goodman Malgas, and a co-accused, Dan Nonwabo Nkili, appeared in the Victoria West Magistrate’s Court on charges of corruption on Tuesday.

National Prosecuting Authority provincial spokesperson Mojalefa Senokoatsane said that Malgas and Nkili were accused of defrauding the municipality by doing business without following proper tender processes.

“It is alleged that Nkili was appointed as a service provider by Malgas, where other service providers and business entities were not given an opportunity to submit tenders,” said Senokoatsane.

He added that various business entities were paid in advance by Ubuntu Municipality. “These entities were De Aar Stone Crushers who were paid R226 164.60; Break Even Loxton, who received R152 395.20; Colas (tar & prime) were paid R40 538; Penny Pinchers (cement) were paid R268 761.95 and Handy Garm (safety clothes) received R21 094.98 from the municipality.”

Senokoatsane stated that Malgas was the acting municipal manager at the time while Nkili was also the signatory of Malgas’ Standard Bank account.

“Their business relationship was disclosed to Ubuntu Municipality. Malgas allegedly authorised payments totalling R598 255 to Nkili, although no services were rendered.”

Senokoatsane indicated that Nkili and Malgas were granted bail of R30 000.

“The case was postponed until October 5 where they will appear alongside other accused.”