Hawks arrested Mandlenkosi James Matutu, an MP for the uMkhonto weSizwe (MK) Party, and Thembelani Ngceba, a Joe Gqabi District Municipality official. They face charges of defrauding the Eastern Cape municipality of more than R1.6 million. The case spotlights tender manipulation in local government, as reported on 25 March 2026. Taxpayers and public services in the area stand to lose from such fraud.
The Hawks made the arrests in Barkly East on Tuesday, 25 March 2026. Matutu and Ngceba appeared in court that same day. The court granted each man bail of R5,000. They must return on 5 May 2026.
In 2019, Matutu’s companies received a tender to install water pipes in Ugie. The firms were Vukabalele Trading CC and Zim-Zet Trading. Hawks say officials faked invoices and delivery notes. Funds moved through accounts, including to Zim-Zet Trading (Pty) Ltd and Matutu’s personal account. This caused a loss of over R1.6 million to the municipality.
Funds were apparently channelled through various accounts, including transfers to Zim-Zet Trading (Pty) Ltd, an entity solely directed by the principal accused, as well as to his personal account. Meticulous investigation by the Hawks confirmed the allegation and exposed that the municipality suffered a financial loss of over R1.6 million.
— Ndiphiwe Mhlakuvana, Eastern Cape Hawks spokesperson
Joe Gqabi District Municipality sits in the Eastern Cape. Ugie is a town in that area. Matutu serves as an MP for the MK Party. The tender process involved fake steps to approve payments.
Key entities include:
- Joe Gqabi District Municipality (victim of fraud)
- Vukabalele Trading CC (Matutu’s company)
- Zim-Zet Trading (Matutu’s company)
- Zim-Zet Trading (Pty) Ltd (linked to payments)
- Hawks (investigators)
The fraud led to a verified loss of more than R1.6 million, per the Hawks investigation.
Financial loss: Over R1.6 million
This money was meant for water infrastructure. Such losses can delay public services like clean water access.
The case returns to court on 5 May 2026. The Hawks investigation continues.
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