News
Hawks Take Action After Alleged R4.2 Million Blow to ECDC Funds
South Africans are no strangers to headlines about state institutions losing money that should have uplifted communities. This time, the Eastern Cape Development Corporation has found itself at the centre of a multimillion rand corruption scandal. The Hawks’ Serious Corruption Investigation Unit in East London has arrested four men believed to have engineered the scheme.
A Contract that Crossed the Line
The allegations point to a carefully constructed plan involving a contract that should never have existed. Former head of Legal, Compliance and Governance at the Eastern Cape Development Corporation, Mandla Gibson Mpikashe, is accused of working with private attorneys to unlawfully push through a Service Level Agreement for debt collection services.
According to the Hawks, this agreement was outside the legal appointment scope. The law firm involved, originally appointed only for the Panel of Legal Services, allegedly saw its role widened without any lawful procurement procedures being followed. That change is where the trouble reportedly began.
Who Stands Accused
Three directors linked to the law firm, named as Simphiwe Mkhululi Mbabane, Bayethe Maswazi, and Mpumelelo Mkosana, appeared alongside Mpikashe at the East London Magistrate’s Court following their arrest. All face accusations tied to the alleged unlawful deductions of more than R4.2 million from the Eastern Cape Development Corporation.
Public reaction in the region has been one of frustration and familiarity. People have taken to social platforms asking the same question heard too often in cases like this. Why are individuals responsible for protecting public funds instead of being accused of misusing them?
Bail and the Road Ahead
Two of the accused were granted bail of R5 000 each, while the other two were released on R10 000. The case has now been postponed to 19 January 2026 as investigators continue to piece together what the Hawks describe as an undue and unjustified financial benefit that flowed from the irregular agreement.
This case fits into a broader national conversation about accountability. South Africa continues to grapple with corruption that drains funds intended to support economic development, especially in provinces like the Eastern Cape, where investment and infrastructure are urgently needed.
While communities wait to see whether justice will prevail, the arrests signal that specialised units remain active in trying to protect public finances. Many will be watching closely to ensure this matter does not fizzle out before answers and accountability are delivered.
Also read: A Critical Unit Dissolved: The Minister’s Explanation Awaited
Follow Joburg ETC on Facebook, Twitter, TikT
For more News in Johannesburg, visit joburgetc.com
Source: The Citizen
Featured Image: News24
