Whistleblowers expose a web of corruption within the Eastern Cape Development Corporation, leading to arrests and a fight for justice over R4.2m in misappropriated funds.
The former head of Legal, Compliance and Governance at the Eastern Cape Development Corporation (ECDC), Mandla Gibson Mpikashe (47), and the directors of the law firm Mbabane, Maswazi & Sokutu Incorporated, Simphiwe Mkhululi Mbabane (45), Bayethe Maswazi (49) and Mpumelelo Mkosana (54), appeared before the East London Magistrates' Court last week on charges of fraud, theft and corruption.
The Hawks arrested them for allegedly illegally deducting R4.2-million from debt they recovered for the ECDC in terms of contracts that were declared unlawful and set aside by the high court.
The alleged fraudulent scheme, first reported by internal auditors and then by whistleblowers on the organisation's anti-corruption hotline, was reported to the police by the ECDC's CEO, Ayanda Wakaba, who was subsequently dismissed on unrelated allegations and is fighting the ECDC in court.
According to documents seen by Daily Maverick, external auditors confirmed the fraud. Their report recommended the registration of a criminal case with the South African Police Service (SAPS) in terms of section 34 of the Prevention and Combating of Corrupt Activities Act.
Why does the ECDC matter for the Eastern Cape?
The ECDC's purpose is to drive economic growth through investment, finance and business support in the province,...
