Nine people and two businesses were arrested in connection with the irregular yellow fleet procurement contract.
The project was a partnership between Kwane Capital (Pty) Ltd and the Alfred Nzo District Municipality (ANDM) in the Eastern Cape province.
The Yellow fleet refers to six trucks, six sprinkler water tankers, and three jet vacuum tankers, all meant for water supply, sanitation and infrastructure support in the municipality.
The SIU investigation revealed that the ANDM paid R75 million to Kwane Capital for trucks, water tankers, and jet vacuum tankers without budget approval and in contravention of Regulation 32 of the Municipal Supply Chain Management Regulations.
It also revealed that Kwane Capital misrepresented ownership of the vehicles, unlawfully used the name of Avis Fleet and induced the municipality into contracts that were invalid and unlawful.
In addition, investigators uncovered fraudulent licensing of road unworthy vehicles, with issued certificates,despite GPS data showing the vehicles never attended testing stations.
The accused are Mcebisi Rudolf Mlonzi: Director of Kwane Capital, Bambangazibini Tabata, Kwane Capital employee, former ANDM officials Xolani Masiza, Paul Mahlasela, and Zuko Mani- Former Avis and Barloworld employees Clive Else and Shawn Govender, Monalitho Muba and Xola Bomela, together with their company Chumani Water Solutions.
They were all granted bail of R10 000 each.