Cape Town – Nine people have appeared in court after their arrest in connection with an allegedly unlawful R75 million water tanker tender in the Alfred Nzo District Municipality in the Eastern Cape, in a case the Special Investigating Unit (SIU) says exposed serious corruption and maladministration.
SIU investigation that uncovered irregularities in the procurement of trucks, water tankers and jet vacuum tankers intended to support water supply and sanitation services in the municipality.
As reported by Eyewitness News, the tender was awarded to a company called Kwane Capital without the required budget approval, raising questions about how the contract was approved.
SIU spokesperson Kaizer Kganyago said the accused appeared before the EmaXesibeni (Mount Ayliff) Magistrates’ Court facing multiple charges.
“The accused appeared… on charges of fraud, corruption, money laundering, and contravention of the Municipal Finance Management Act,” he said.
The investigation revealed that the contract covered what officials described as a “yellow fleet” comprising trucks, sprinkler water tankers and jet vacuum tankers meant to assist with water delivery and infrastructure support.
The accused appeared before the EmaXesibeni (Mount Ayliff) Magistrates’ Court on charges of fraud, corruption, money laundering, and contravention of the Municipal Finance Management Act (MFMA). The Yellow fleet refers to six trucks, six sprinkler water tankers, and three jet…
— Special Investigating Unit (SIU) (@RSASIU) February 16, 2026
According to The Citizen, investigators found that the municipality paid roughly R75 million for the fleet despite the absence of budget approval and in violation of supply-chain regulations.
The SIU further alleged that the company misrepresented ownership of the vehicles and unlawfully used the name of a major fleet firm to secure the deal, effectively inducing the municipality into contracts deemed invalid and unlawful.
Authorities also uncovered evidence of fraudulent licensing processes, with roadworthy certificates allegedly issued even though tracking data indicated the vehicles had never been taken to testing stations.
The financial impact on the municipality is believed to be severe. Kganyago said the municipality suffered an actual or potential loss of about R60.7 million due to overcharging and excessive profit margins, adding that civil proceedings have been initiated to recover the money.
“The SIU has instituted a civil action in the Special Tribunal to review and set aside the contract and to recover losses suffered by the municipality,” he said.
All nine accused were granted bail of R10,000 each after their court appearance, while the criminal case continues.
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Compiled by Lisabeal Nqamqhele
