News24 | Police raid 26 properties in Cape Town linked to R1.6bn tender fraud case

2 weeks ago 3

An empty police vehicle parked next to the Cape Town Civic Centre.

An empty police vehicle parked next to the Cape Town Civic Centre.

  • A large-scale search-and-seizure operation in Cape Town is targeting alleged tender fraud worth R1.6 billion.
  • Police executed warrants at 26 locations in Cape Town, including businesses, municipal officials’ homes, and contract-related sites.
  • Mayor Geordin Hill-Lewis said they will always do all they can to root out any malfeasance when they become aware of it.

A large-scale search-and-seizure operation is unfolding in Cape Town as the police’s commercial crime investigations unit executes warrants related to alleged tender fraud totalling R1.6 billion.

Officers went knocking at 26 addresses across Cape Town from the early hours of Tuesday morning and continued their operation into Wednesday.

According to police, the intervention followed information received from a whistleblower and subsequent preliminary investigations by the City of Cape Town and the authorities.

The identified addresses include business premises, private residences of municipal officials, and locations linked to people and entities that were awarded contracts by the City.

Police spokesperson Colonel Andrè Traut said the operation sought to secure both documentary and electronic evidence to establish the full extent of the alleged fraud and corruption.

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“This coordinated effort underscores the commitment of law enforcement agencies to decisively address corruption and safeguard public resources,” he added.

According to information News24 obtained through reliable sources, the City conducted an internal investigation into alleged tender fraud linked to its urban mobility directorate.

City manager Lungelo Mbandazaya had reported the matter to the Hawks, which prompted the search-and-seizure operation.

A police van parked outside the City of Cape Town Civic Centre on Wednesday.

Mayoral committee member for safety and security JP Smith confirmed that the raids were linked to alleged corruption and fraud in the urban mobility directorate, but said he had limited details.

“I am not briefed on investigations like the [suspended] Minister of Police Senzo Mchunu,” Smith said.

Speaking to News24 on Wednesday, Mayor Geordin Hill-Lewis said, “We will always do all we can to root out any malfeasance when we become aware of it. So, we’re supportive of their action, and our own internal processes, in fact, spurred this action.”

In a statement, the City said that following information obtained through preliminary investigations supported by the municipality, police’s Commercial Crimes Unit conducted a search-and-seizure operation at various sites.

“In line with the City’s zero tolerance approach to fraud and corruption, City Forensic Services took swift action to assess and report the matter to SAPS, who then undertook a search-and-seizure operation,” it said.

The City’s spokesperson Luthando Tyhalibongo added:

The alleged tender fraud does not ‘total’ R1.6 billion. While SAPS claimed the contracts linked to the investigation amount to R1.6 billion, this does not mean this amount was stolen or diverted from its intended public purpose.

ANC caucus leader Ndithini Tyhido said, “The ANC feels vindicated by this action as it confirms our long-held view that the City of Cape Town is rotten with corruption and the fallacy of a best-run city was one day going to fall.”

Tyhido added they will monitor developments with keen interest.

GOOD party’s secretary-general Brett Herron said they are not in possession of full details regarding the specific contracts or companies involved.

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“While the Democratic Alliance frequently holds up Cape Town as a model of clean governance, the pattern of emerging scandals tells a different story. It points to systemic failures in oversight, accountability, and due diligence within the City of Cape Town,” he said.

The National Coloured Congress leader, Fadiel Adams, who was outside the City of Cape Town Civic Centre on Wednesday afternoon, said: “I promised you about a year ago that there’s going to be many, many raids in the City. This is the first of many. The chickens are going to come home to roost. I’m telling you now that this is one giant financial crime scene.”

NCC leader Fadiel Adams outside the City of Cape Town Civic Centre on Wednesday afternoon.

DA provincial leader Tertuis Simmers said: “As the DA Western Cape, we welcome the raids that took place in the City of Cape Town and await the further details that will be made available by SAPS as the investigation progresses.”

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