MK Party MP, EC official arrested for alleged municipal fraud of more than R1.6m

A member of Parliament (MP) for the uMkhonto weSize (MK) Party, Mandlenkosi James Matutu, and a Joe Gqabi District Municipality official in the Eastern Cape, have been arrested for allegedly defrauding the municipality of more than R1.6 million.
 
Matutu and Thembelani Ngceba were arrested by the Hawks in Barkly East on Tuesday and appeared in court on the same day.
 
According to the Hawks, Matutu, who owns Vukabalele Trading CC and Zim-Zet Trading, was awarded a tender in 2019 to install water pipes in Ugie.
 
Investigators said the tender process was manipulated, with municipal officials falsely confirming the delivery of water pipes, approving fake invoices and delivery notes.
 
Eastern Cape Hawks spokesperson Ndiphiwe Mhlakuvana said both the accused have been granted bail of R5,000 each and are expected back in court on 5 May 2026.
  
"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."