Fraud accused: Contract breach SIU’s fault

Fraud accused businessman Mcebisi Mlonzi is blaming the Special Investigating Unit (SIU) for allegedly providing bad advice to the Amahlathi local municipality that resulted in the entity surrendering the heavy construction plant equipment it had already paid him R92-million for.

Mlonzi is one of two men arrested in the Eastern Cape two weeks ago. He appeared in the Stutterheim magistrate’s court last Monday on charges of fraud related to his contract in 2014 to supply heavy plant machinery valued at R107-million to the municipality.

Appearing alongside him was former Amahlathi municipal manager Balisa Socikwa, who was charged with contravening the Municipal Finance Management Act (MFMA).

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