R500k kickback demand alleged in Knysna security tender scandal

Update

KNYSNA NEWS - Former acting chief financial officer Busisiwe Lubelwana allegedly played a central role in soliciting hundreds of thousands of rands from a security services provider in a corruption case involving her, former mayor Thando Matika and former acting municipal manager Boy Ngubo.

The allegation emerged in the Knysna Magistrate's Court on Monday 12 October, when the accused were granted bail of R20 000 each after more than a week in custody. They were arrested on 1 October.

Alleged kickback demands

According to the investigating officer's affidavit, the service provider was awarded an emergency close-protection contract worth about R3.7m in August.

Lubelwana allegedly demanded R500 000, claiming the money was needed ahead of the elections.

The affidavit further alleges that the provider made several payments and faced additional demands involving third-party accounts, including amounts allegedly requested on behalf of Ngubo.

Ngubo allegedly approached the provider about further security tenders and suggested that future work depended on maintaining a favourable relationship with municipal officials.

The provider was also allegedly threatened with contract termination if further payments were not made.

Alleged campaign donation

The affidavit also refers to a separate alleged request by Matika for a donation towards his election campaign. The provider allegedly paid R10 000 in two instalments of R5 000 each into account numbers Matika had provided. The alleged campaign donation is separate from the kickback allegations.

The payments alone do not establish that the donation was unlawful or that Matika was involved in the alleged demands described in the affidavit.

The Electoral Commission of South Africa (IEC) regulates political funding under the Political Funding Act.

Although the IEC's website still displays a R100 000 disclosure threshold, the Commission announced in August 2025 that the threshold had increased to R200 000, effective from 18 August 2025.

A subsequent Electoral Court judgment refers to a prescribed threshold of R250 000. The alleged R10 000 donation falls below these thresholds when considered on its own.

Bail granted

The trio were each granted bail of R20 000, subject to conditions including reporting to the police twice weekly, surrendering their passports, remaining at their confirmed addresses and not contacting witnesses directly or indirectly.

Lubelwana's attorney, Daan Dercksen, said his client maintained her innocence and would defend the allegations in court. He confirmed that her municipal contract had ended and that she would return to KuGompo City.

The case was postponed to 2 December for further investigation. The State indicated that additional charges had not been ruled out.

The charge sheet refers to about R510 000 allegedly solicited from the provider. Separately, the Special Investigating Unit is investigating the broader security contract valued at about R68m.

Matika's release on R20 000 bail was met with elation by his supporters, family members and members of the South African Communist Party.

Matika is contesting the upcoming local government elections under the SACP banner for the first time, as both a mayoral and ward candidate. Following his release, Matika can continue campaigning, and the party members support the principle that he is innocent until proven guilty.

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