Former Newcastle Municipal Manager and CFO charged with fraud

Newcastle Municipality Fraud

Estimated reading time: 2 minutes

Former Newcastle Municipal Manager Bhekani Errol Mswane, CFO Bhekisisa Hlongwane, Bonakude Consulting (Pty) Ltd and its Director, Velenkosini Lindokuhle Mtshali appeared in the Durban Specialised Commercial Crimes Court on Thursday, 29 September 2022, on charges of fraud, money laundering and contravention of the Municipal Financial Management Act (MFMA) totalling R7.8 million.

According to the courts, Mswane and Hlongwane were employed at the Newcastle Municipality as the Municipal Manager and Chief Financial Officer respectively. This, while Mtshali was the sole Director of Bonakude Consulting, a consultant to the municipality.

KZN Regional Spokesperson for the National Prosecuting Authority (NPA) Natasha Kara said, “The state is alleging that between 2018 and 2019, the men colluded to illegally extend an expired contract for Bonakude Consulting to provide consulting services to the municipality. It is also alleged that Mswane and Hlongwane contravened the MFMA by incurring irregular and wasteful expenditure.” 

Moreover, Kara explained that further allegations showed that Mtshali and Bonakude Consulting received the proceeds of unlawful activities from Mswane and Hlongwane after they were paid for the non-existent contract. 

As a result, the court granted them bail of R20 000 each with the following conditions: 

  • Surrender their passports and not apply for travel documents.
  • Not enter the municipality until the finalisation of the trial. 
  • Not contact state witnesses. 
  • Mtshali and his company are not to tender for work at the municipality until the trial is finalised.

With the matter being remanded to 1 November 2022, what are your thoughts on this? Do you think justice will prevail? 

Share your views in the comment section below.

Comments 7

  1. Trevor says:

    Oh well Domino effect seems inevitable… If you do the crime…you do the time..

  2. Elaine says:

    The witness needs protection. Maybe some hitmen will be sent out now

  3. Newcastle is still growing and we the Newcastle born and bread, we are very disappointed and ashamed..
    We might be in Gauteng but we are KNZ citizens and we are very proud…
    Let the Law take its duties…..

  4. Jabulani says:

    “Bread gained by deceit is sweet to a man, but afterward his mouth will be full of gravel.”

  5. Adv Kevin Pohotona says:

    Newcastle, South Africa intelligentsia has always made us feel safe and over watched, regardless of the backlog work in the forensic department. Every sindicate shall indeed confess in a court of law.

  6. Buhlebuhle says:

    We’re not surprise corruption in our municipal is worse than you can imagine after 24years of democracy there’s nothing we can say or show our kids that this is what we achieved or done by our government we voted for. The funny part they are not even born here the ANC has killed our town but again who are we even today a simple roads we’re born using with mud we are still walking on even today what can a top structure says because its also corrupt first it was Inkandla now is Phala phala i give up.

  7. andries says:

    This is a shame hope the get locked up. fire everyone in the boulding because the dont read our wayer or electricity meters its been proofen over and over that our money is getting stollen and no one is doing something about it

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