‘Paid without doing any work’: Two former municipal officials jailed for fraud and money laundering

Former Dr Pixley ka Seme Local Municipality employees, Mxolisi Evidence Hadebe and Luthando Mpangeva were found guilty and sentenced for fraud and money laundering. Picture: Hawks

Former Dr Pixley ka Seme Local Municipality employees, Mxolisi Evidence Hadebe and Luthando Mpangeva were found guilty and sentenced for fraud and money laundering. Picture: Hawks

Published Nov 25, 2024

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Former Dr Pixley ka Seme Local Municipality employees, Mxolisi Evidence Hadebe, 46, and Luthando Mpangeva, 38, were found guilty and sentenced by the by Middelburg Specialised Commercial Crimes Court.

The duo were sentenced on Friday, according Captain Dineo Lucy Sekgotodi, Mpumalanga provincial spokesperson for the Directorate for Priority Crime Investigation, also known as the Hawks.

The two were convicted for fraud and money laundering in terms of the Prevention of Organised Crime Act (Poca).

“The sentence followed after the Hawks Middelburg serious corruption investigation (unit) took over investigation regarding fraud reported within the municipality,” said Sekgotodi.

“It was reported that on June 9, 2020, information was received from the former chief financial officer of Dr Pixley ka Seme Local Municipality regarding alleged misconduct between the Evoke Trading (Pty) Ltd and officials employed by the same municipality, Thando Mpangeva and Mxolisi Evidence Hadebe.”

Former Dr Pixley ka Seme Local Municipality employees, Mxolisi Evidence Hadebe and Luthando Mpangeva were found guilty and sentenced for fraud and money laundering. Picture: Hawks

Evoke Trading (Pty) Ltd was appointed as service providers by the municipality.

It was later discovered that the company was paid by the municipality without delivering any service or work.

“Mr Mxolisi Hadebe confirmed that the work was done, while Luthando Mpangeva, the project manager, ensured that fraudulent invoices were created and paid. Consequently, the municipality suffered the actual loss of R127,974,” said Sekgotodi.

The two accused were found guilty on all the six charges on Thursday and the case was rolled over to Friday for sentencing.

“Mxolisi Evidence Hadebe and Luthando Mpangeva appeared before the Middelburg Specialised Commercial Crime Court on Friday and were sentenced as follows — both accused found guilty on five counts of fraud and one money laundering charge,” said Sekgotodi.

“They were sentenced to two years imprisonment on each count in terms of Section 280(2) of the Criminal Procedure Act 51 of 1977. The court ordered that the sentences imposed should run concurrently.”

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