Price-Fixing Scandal: Mkhondo Municipality Paid R85,875 for R718 Service

A senior public safety manager at Mkhondo Municipality in Mpumalanga has been arrested in connection with a price-fixing scheme that cost the municipality nearly 120 times more than the real value of a service.

The Arrests

The Hawks’ Serious Organised Crime Investigation Unit arrested Sydney Masango (46) and his accomplice Gugulethu Zulu (48) on Thursday.

• Masango was taken into custody at the Mkhondo local municipality offices.

• Zulu, a company director, was arrested at a filling station in Piet Retief.

Both suspects appeared in the Mkhondo District Court and were released on R4,000 bail each. Their case has been postponed to 6 October 2025 for a regional court date.

How the Price-Fixing Scheme Worked

According to the Hawks:

• In 2019, the municipality’s road marker machine needed repairs.

• The actual service provider charged R718.20 to fix it.

• Masango and Zulu allegedly ensured the invoice was inflated to R85,875 through Zulu’s company, Legent 12.

• The full amount was paid into Zulu’s business account, with Masango implicated in facilitating the fraud.

Hawks’ Response

Provincial Hawks spokesperson Lieutenant Colonel Magonseni Nkosi confirmed that investigators traced the fraud directly to the accused.

Acting provincial head of the Hawks, Brigadier Bruce Davenport, praised the operation.
“We once again warn the public that the Hawks will always seek, find, and strike at the right time,” he said.

What It Means for Mkhondo

The case adds to mounting concerns over municipal corruption in Mpumalanga, where inflated tenders and manipulated invoices continue to drain public funds. While the legal process unfolds, pressure grows for greater oversight in municipal procurement.

{Source: IOL}

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