News24 | Hawks arrest four in R4.2m fraud, theft and corruption scandal in Eastern Cape

The Hawks arrested four people in a R4.2 million fraud, theft and corruption scandal in the Eastern Cape.

• Four men, including a former Eastern Cape Development Corporation executive, were arrested by the Hawks on Thursday.
• They stand accused of allegedly orchestrating a multimillion-rand fraud, theft and corruption scheme involving more than R4.2 million.
• All four were released on bail with separate amounts.

The Hawks’ Serious Corruption Investigation unit in East London has arrested four men accused of orchestrating a multimillion-rand fraud, theft and corruption scheme involving the Eastern Cape Development Corporation (ECDC).

Hawks spokesperson Warrant Officer Ndiphiwe Mhlakuvana said the alleged crimes, which involve more than R4.2 million, centre on what investigators described as an unlawful and irregular expansion of a service contract.

The accused, Mandla Gibson Mpikashe, 47, is the former head of legal, compliance and governance at ECDC, while Simphiwe Mkhululi Mbabane, 45, Bayethe Maswazi, 49, and Mpumelelo (Mtumelelo) Mkosana, 54, are all directors of Mbabane and Sokutu Inc attorneys, police said.

All four accused appeared in the East London Magistrate’s Court on Thursday on the mentioned charges.

According to the Hawks, Mpikashe and Mkosana were released on R5 000 bail each, while Mbabane and Maswazi were granted R10 000 bail each at their first court appearance.  

Ongoing investigations revealed that Mpikashe, who was responsible for governance and compliance at the ECDC, allegedly colluded with the service provider to irregularly conclude a service level agreement (SLA) for debt collection services.

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The law firm, Mbabane Maswazi & Sokutu Incorporated, had been appointed in March 2016 strictly for the panel of legal services, not for the panel of debt collectors.

In 2017, the firm was reportedly renamed Mbabane and Maswazi Inc. attorneys.

Despite these limitations, an SLA dated May 2017 – purportedly signed by Mpikashe on behalf of the ECDC, allegedly extended the scope of work to include debt collection without any lawful procurement process.

This deviation, investigators say, created an opportunity for the service provider to unlawfully deduct approximately R4.2 million from the ECDC, constituting “an undue, unjustified and unlawful financial benefit”, Mhlakuvana said.

The matter was referred to the Hawks, and a “meticulous investigation” led to the arrest of the accused on Wednesday, 4 December.

The case was remanded to 19 January 2026 for further investigation, the Hawks said.