Mogalakwena Local Municipality manager Morris Maluleke is expected to make a formal bail application on Monday after the Limpopo High Court dismissed his urgent bid to secure his release from custody in connection with an alleged R45 million municipal tender scandal.
Maluleke, 43, remains behind bars after the High Court in Polokwane dismissed his application challenging the Mokopane Magistrates’ Court’s decision to keep him in custody pending his formal bail proceedings.
The urgent application was heard on 12 October, with the National Prosecuting Authority (NPA) Senior State Advocates Martin Molokwane and Freddy Van Der Merwe, together with State Advocate Nkwana, successfully opposing his attempt to overturn the magistrate’s decision.
The matter was subsequently postponed to Monday, 19 October, for his formal bail application.
R45 million tender scandal
Maluleke, who heavily cried at the Mokopane Magistrate’s Court during his first court appearance, was arrested on 7 October following a Hawks investigation into alleged irregularities surrounding a municipal fleet management contract awarded in December 2022.
He is charged alongside a company identified by the NPA as Bona Cord Vulstasie, in connection with allegations of fraud, corruption and money laundering.
According to the State, Maluleke initially approved a fleet contract valued at approximately R4 million before allegedly authorising payments amounting to about R24 million.
The prosecution further alleges that the tender was irregularly awarded to Fleetmove (Pty) Ltd without compliance with prescribed supply chain management procedures.
The NPA said payments allegedly began in January 2023, but services were only rendered between April and May that year, after the municipality’s legal division threatened to terminate the contract.
The State is also investigating alleged payments of R230,000, believed to be kickbacks, into an account linked to Maluleke through a company of which he is the sole director.
Shanton granted R100,000 bail
As previously reported by African Times News, the Hawks arrested 37-year-old Lutchman Shanton in September as part of the investigation into the alleged R45 million Mogalakwena tender scandal.
Shanton appeared before the Mokopane Magistrates’ Court on 17 September and was granted R100,000 bail. His case was postponed to 3 November for further investigations.
Shanton faces charges of fraud, theft, corruption and alleged contraventions of the Municipal Finance Management Act (MFMA).
The investigation centres on a fleet management tender advertised and awarded by Mogalakwena Local Municipality in 2022. Investigators are reportedly probing whether procurement procedures were followed, tracing the movement of money and examining the involvement of individuals and private entities allegedly linked to the contract.
The Hawks had identified a legal entity allegedly linked to Shanton as part of their investigation.
