The Hawks, alongside the National Prosecuting Authority’s Asset Forfeiture Unit (AFU), has obtained a High Court preservation order freezing assets worth R2.7-million tied to a fraud, corruption, and money laundering investigation.
According to the Hawks on Thursday, the order was granted on September 26, 2025, by the North West High Court, targeting three luxury vehicles allegedly purchased with embezzled public funds from the City of Matlosana municipality.
CFO allegedly fingered in graft
At the centre of the storm is Mercy Phetla, the municipality’s Chief Financial Officer, who is joined by five co-accused in what investigators describe as a brazen scheme to siphon off millions.
Hawks’ Serious Corruption Investigation and Priority Crime Specialised Investigation uncovered the fraud, which unfolded between September 2023 and January 2024.
During this period, the cash-strapped municipality shelled out more than R6-million to Variegated (Pty) Ltd. It is a service provider, who got paid for services that were never delivered.
Probes revealed that over R4-million of the stolen funds was funnelled to a vehicle dealership. It bankrolled the acquisition of three high-end rides. A Porsche worth R2.3-million, a Range Rover at R1-million, and a Maserati clocking in at R1.4-million.
These purchases, investigators say, were the fruits of corruption. The vehicles symbolise the elite lifestyles afforded by taxpayers’ misery.
Hawks welcome arrests
“We commend the collaborative work between the two entities. This hard work resulted in securing of the preservation order,” said Brigadier Georgia Moos, the North West Acting Hawks head.
The preservation order specifically locks down three luxury vehicles. A Mercedes Benz CLA200, a Range Rover Evoque, and a Maserati Levante S M156, valued at R2.7-million collectively.
The suspects, Phetla, Tiisetso Sebetlela who is the director of the phantom service provider Variegated, Josephine Tsimane, a stores official at the City of Matlosana, Anga Shongwe, Mathapelo Puswe, and Vincent Shongwe, are scheduled to appear before the Specialised Commercial Crime Court in Klerksdorp on October 27, 2025. Prosecutors will lay out the full extent of the alleged betrayal of public trust.
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