The high-profile fraud trial involving suspended Nelson Mandela Bay city manager and human settlements head resumed in the Specialised Commercial Crimes Court in Gqeberha on Thursday.
It started with arguments based on a controversial R24-million tender awarded during the Covid-19 pandemic.
Suspended city manager Noxolo Nqwazi faces fraud charges, among others, alongside suspended human settlements head Mvuleni Mapu, ANC regional secretary Luyolo Nqakula, and former DA councillors Mbulelo Manyathi, Trevor Louw, and Neville Higgins.
The business owners implicated include Xolani Masela and his wife, Nwabisa, of Thuthiko Logistics; their daughter, Nonpumezo Ngotsha, as director of the company; and Morne van der Linde of HT Pelatona Projects.
Prosecutors allege that the group exploited the pandemic to enrich themselves by sidestepping procurement rules, awarding a multimillion-rand contract to HT Pelatona Projects for constructing 2 000 toilets in the metro.
The accused are charged with fraud, money laundering, corruption, and violating the Municipal Finance Management Act (MFMA).
Failure to demonstrate guilt
Their attorneys vigorously contested the state’s case, asserting that prosecutors failed to demonstrate guilt.
State Adv. Leigh-Anne Pillay-Selahle outlined the prosecution’s position
“The state’s case relies on the unfair appointment of a service provider and the circumvention of supply chain management processes,” stated Pillay-Selahle.
Nqwazi’s attorney, Alwyn Griebenow, countered by highlighting testimony from state witnesses, who affirmed that procedures were followed meticulously.
“State witnesses who testified about the procedures followed stated that everything was done according to the book,” Griebenow said.
He invoked Sections 217 and 36 of the MFMA, linking them to South Africa’s constitutional procurement provisions.
Griebenow argued that during the Covid-19 lockdown, municipalities nationwide were instructed to use deviations, with no bid adjudication committees operational.
“While the country was in the grip of the pandemic, municipalities across the country were told to make use of diversions, and not a single bid adjudication committee was sitting during the lockdown,” he said.
MFMA properly adhered to
Griebenow dismissed claims of no budget, pointing to Treasury letters allocating R25-million for water standpipes and toilets amid densification issues.
“Nowhere has Section 36 been found unconstitutional. The state chooses to nitpick evidence in their case, and they want this court to accept their representation of the section.
“The state claims that the tender was unfairly awarded; however, this assertion cannot be supported by the evidence and the MFMA, which was properly adhered to.”
The declared disaster justified the deviation, and an inspection confirmed the delivery of the toilets, he added.
The state claims Nqwazi and Mapu fabricated quotations from two other suppliers post-decision to appoint Van der Linde’s firm.
Mapu allegedly submitted these to the metro’s contract manager after the fact.
Court documents show that R300 000 was paid into Nqakula’s account on April 28, 2020, with Nqakula then transferring R100 000 each to Manyathi, Louw, and Higgins.
The case has been postponed to February 5 for further proceedings.
