Knysna corruption case: Millions in alleged demands

Update

KNYSNA NEWS - The opposed bail application of former Knysna mayor Thando Matika and his co-accused, acting municipal manager Boy Ngubo and acting chief financial officer Busisiwe Lubelwana, is expected to resume in the Knysna Magistrate’s Court today, Tuesday 13 October.

Magistrate Elsie Schoeman postponed the matter on Monday 12 October, and a decision on the opposed bail application is expected when the proceedings resume.

The trio faces charges of corruption, money laundering and extortion arising from an investigation into alleged corruption involving a municipal security services contract.

During Monday’s proceedings, the bail affidavits of all three accused were placed on record and read out by their respective defence attorneys.

Ngubo is represented by Carl Jeppe, Lubelwana by Daan Dercksen and Matika by Jaco van Heerden.

The court heard allegations that demands for payments were largely made by Lubelwana, with the amounts allegedly solicited exceeding R2m. Evidence presented in court also included allegations that the demands featured expensive champagne.

The investigating officer reportedly presented evidence concerning the alleged exchange of large sums of cash in a Shoprite plastic bag at Food Lover’s Market in Knysna. According to the police, the arrests form part of an investigation into alleged corruption involving a municipal security services contract.

Investigators allege that the businessman awarded the contract was solicited for kickbacks to ensure its continuation, and had already paid hundreds of thousands of rand after allegedly being threatened with its cancellation.

The charge sheet indicates that about R510 000 was allegedly demanded, while Matika faces an additional charge of corruption.

Questions raised over tender procedures

Evidence presented in court also appeared to raise questions about whether the required procurement procedures and due diligence were followed in relation to the municipal security services contract.

The court reportedly heard that the municipal manager had invited the complainant to attend a tender briefing, despite having previously declined the tender. The invitation allegedly came as a surprise to him.

The municipality has been approached for comment on whether the complainant had applied for the security tender and whether its records confirm that he had submitted the required tender documents, amid allegations that proper procurement procedures may not have been followed.

The court also heard evidence concerning an alleged enquiry by Ngubo about close protection services from the complainant in June this year. The alleged enquiry preceded the fatal shootings of former Knysna mayor Aubrey Tsengwa on 19 August, followed by the deaths of former ANC councillor Mandla Matiwane and taxi owner and ANC member Mandla Tyololo on 20 August.

Evidence presented in court further indicated that the municipality incurred at least R3m in costs for close protection services deployed following the shootings, for the period between 24 and 26 August alone.

Questions remain about whether the required procurement procedures were followed in appointing the security service provider.

While the timing of Boy Ngubo’s alleged enquiry and the subsequent shootings was raised during the proceedings, no link between the accused, the alleged tender irregularities and the three killings has been established in the information available for this report.

The opposed bail application is expected to continue today, and the court’s decision is awaited. This is a developing story. Further details will follow as they become available.

Read Knysna-Plett Herald this week for more information.

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