Controversial businessman granted R50,000 bail in R90m fraud and money laundering case

Controversial Kwane Capital director Mcebisi Mlonzi, who has been charged with fraud, money laundering and contravening the Municipal Finance Management Act, was on Monday granted R50,000 bail.

Mlonzi and former Amahlathi municipal manger Balisa King Socikwa were arrested by the Hawks' anti-corruption task team at the weekend in Sandton and Qumbu respectively.

The elite crime fighting task team that has been tasked with investigating fraud and corruption at municipalities, swooped on the two in relation to a R90m plant machinery tender allegedly wrongfully awarded to Kwane Capital in 2015 by Amahlathi municipality.

Mlonnzi and Socikwa appeared at a packed Stutterheim magistrate’s court on Monday where they were granted R50,000 and R30,000 bail, respectively.

The case was then postponed to February 19, 2020.

Last week, the Daily Dispatch reported how the Special Investigative Unit said Kwane Capital should have been disqualified instead of being awarded a R106m plant machinery tender at Mbhashe municipality after submitting fraudulent documents.