EASTERN CAPE — A R1.6 million water tender in the Joe Gqabi District Municipality is under investigation after authorities alleged that water pipes were approved for payment despite not being delivered.
The tender was advertised in December 2019 for the supply and installation of water pipes for the Ugie community.
The contract was awarded to Vukabalele Trading CC.
According to the Hawks, municipal officials allegedly approved delivery notes and invoices even though the pipes had not been delivered.
The municipality then paid the service provider in full.
Investigators are also examining financial transactions linked to the tender. The Hawks believe some of the money may be connected to money laundering and illicit enrichment.
The investigation has led to the arrest of 51-year-old Dumisani Lusawana, a manager in the municipality’s Water and Sanitation Services Department.
Lusawana was arrested on 3 September 2026 and appeared briefly in the Barkly East Magistrate’s Court.
He was granted R5,000 bail and is expected back in court on 7 September 2026. He is expected to appear alongside his co-accused.
The case is expected to be transferred to the Elliot Regional Court.
The Hawks estimate that the municipality suffered a financial loss of more than R1.6 million.
