Beleaguered former Mogalakwena Local Municipality manager Montengo Morris Maluleke will know his bail fate on 27 October 2026 when the Mokopane Magistrates’ Court delivers its ruling on his formal bail application.

His case involves alleged irregular payments of R24 million, a disputed fleet management contract and suspected kickbacks of R230,000.

Maluleke, 43, who appeared in court today, Monday, October 19, remains in custody after his bail proceedings were postponed for judgment. The case forms part of a broader Hawks investigation into alleged fraud, corruption and money laundering linked to a municipal fleet management tender, with the potential financial prejudice to the municipality estimated at approximately R45 million.

The State’s allegations paint a picture of a contract whose value allegedly increased dramatically, payments made before services were delivered, and money suspected to have been channelled to a company linked to the former municipal manager.

From R4 million to R24 million in payments

According to the National Prosecuting Authority (NPA), Maluleke initially approved a fleet management contract valued at approximately R4 million but subsequently authorised payments totalling about R24 million in connection with the contract.

The State alleges that these transactions resulted in substantial financial losses for the municipality.

Prosecutors further allege that in December 2022, Maluleke irregularly awarded a fleet tender valued at approximately R24 million to Flitmove (Pty) Ltd without following the prescribed supply chain management procedures.

The investigation is examining whether the procurement process complied with the applicable requirements and how the contract came to involve payments significantly exceeding the initial contract value.

Payments allegedly began before services were delivered

One of the key allegations concerns the timing of payments made under the contract.

The State alleges that payments began in January 2023, but services were only rendered between April and May 2023.

According to the prosecution’s account, the services were delivered only after the municipality’s Legal Division threatened to terminate the contract.

This sequence of events has become an important part of the allegations against Maluleke, with investigators examining why payments allegedly commenced months before services were provided and whether the municipality received value for the money paid.

R230,000 allegedly paid as gratification

Investigators have also traced a separate payment of R230,000 that the State believes may have constituted a kickback linked to the contract.

According to the NPA, the money was allegedly paid into an account linked to Maluleke through a company of which he is the sole director. The company operates in the fuel supply sector.

The State says it’s treating the alleged payment as suspected gratification, raising questions about whether money connected to the municipal contract was channelled to a business associated with the official responsible for approving or administering the arrangement.

How the R45 million investigation unfolded

The Hawks’ investigation, conducted under Operation Phunyuka Bam’phethe involved a fleet management tender advertised and awarded by Mogalakwena Local Municipality in 2022.

The Hawks have said preliminary findings indicated that the procurement process may not have complied with prescribed procedures.

Investigators are tracing the movement of money and examining the involvement of individuals and private entities allegedly connected to the tender.

Maluleke was arrested on 7 October 2026. He and a company identified in court reporting as Bon Accord Vulstasie were brought before the Mokopane Magistrates’ Court in connection with allegations of fraud, corruption and money laundering.

High Court rejects urgent application

As previously reported by African Times News, Maluleke attempted to challenge the lower court’s decision to keep him in custody while he pursued his formal bail application.

On 12 October 2026, the Limpopo High Court sitting in Polokwane dismissed his urgent application seeking a review of the Mokopane Magistrates’ Court’s decision.

The dismissal left him in custody as the criminal proceedings continued.

Another suspect granted R100,000 bail

The investigation had already resulted in the arrest of 37-year-old Lutchman Shanton in September 2026.

As previously reported by African Times News, Shanton appeared before the Mokopane Magistrates’ Court on 17 September and was granted R100,000 bail. His case was postponed to 3 November 2026 for further investigations.

Shanton faces allegations involving fraud, theft, corruption and contraventions of the Municipal Finance Management Act (MFMA).

His arrest was part of the same wider investigation into the municipality’s fleet management tender. The Hawks have been examining the procurement process, the money trail and the possible involvement of private entities linked to the contract.