2 ex-municipal officials jailed for fraud and money laundering

2 ex-municipal officials jailed for fraud and money laundering! Two former employees of the Dr Pixley ka Seme Local Municipality, Mxolisi Evidence Hadebe, 46, and Luthando Mpangeva, 38, have been found guilty of fraud and money laundering.

The Middelburg Specialised Commercial Crimes Court delivered the verdict on Friday, marking the conclusion of an extensive investigation led by the Hawks.

Details of the Conviction

The duo was convicted under the Prevention of Organised Crime Act (POCA) after an investigation by the Hawks’ Middelburg Serious Corruption Investigation Unit revealed their involvement in fraudulent activities.

According to Captain Dineo Lucy Sekgotodi, the Mpumalanga provincial spokesperson for the Hawks, the case involved allegations of financial misconduct that caused significant losses to the municipality.

“The sentence followed after the Hawks Middelburg Serious Corruption Investigation Unit took over the investigation regarding fraud reported within the municipality,” said Sekgotodi.

The Fraudulent Scheme

The case dates back to June 9, 2020, when the former chief financial officer of the Dr Pixley ka Seme Local Municipality reported suspected misconduct involving Evoke Trading (Pty) Ltd, a company appointed as a service provider for the municipality.

The investigation revealed that Evoke Trading (Pty) Ltd had received payments from the municipality without delivering any services or completing the work it was contracted to perform.

According to Sekgotodi, Mxolisi Evidence Hadebe falsely confirmed that the work had been done, while Luthando Mpangeva, the project manager, facilitated the creation and approval of fraudulent invoices. As a result, the municipality suffered a financial loss of R127,974.

Court Proceedings and Charges

Both Hadebe and Mpangeva faced six charges, including five counts of fraud and one count of money laundering. After being found guilty on all charges on Thursday, the case was postponed to Friday for sentencing.

The court handed down the following penalties:

• Fraud Convictions: Two years imprisonment for each of the five counts.
• Money Laundering Conviction: A separate sentence under POCA.

The court ordered that the sentences run concurrently, meaning the total time served will be two years.

Implications of the Sentencing

The sentencing highlights the judicial system’s commitment to holding public officials accountable for corruption and fraudulent activities. It serves as a warning to those entrusted with public funds and emphasizes the importance of transparency and accountability in local government operations.

Sekgotodi praised the efforts of the Hawks and the judiciary for ensuring justice was served.

Broader Impact on Anti-Corruption Efforts

This case underscores the prevalence of financial misconduct within local municipalities and the critical role of oversight bodies like the Hawks in combating corruption. The fraudulent scheme orchestrated by Hadebe and Mpangeva not only defrauded the municipality but also undermined public trust in local government.

The financial loss of R127,974, while relatively modest, represents funds that could have been used to improve services for the community. This incident serves as a reminder of the ongoing need to strengthen internal controls within municipal structures to prevent similar occurrences in the future.

Conclusion

The conviction and sentencing of Mxolisi Evidence Hadebe and Luthando Mpangeva mark a significant step in addressing corruption within South Africa’s local government.

While justice has been served, this case highlights the continued need for vigilance, robust oversight, and effective law enforcement to deter financial crimes in public institutions.

By ensuring accountability, the judiciary and anti-corruption agencies contribute to restoring public confidence and safeguarding the integrity of municipal governance.

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