Price-fixing shocker: How a municipality paid R85,875 for minor service costing R718
A senior municipal manager responsible for public safety at the Mkhondo local municipality in Mpumalanga has been arrested in connection with a price fixing scandal which has haunted him over the past six years.
The Directorate for Priority Crime Investigation, also known as the Hawks, said Sydney Masango, 46, was arrested alongside his accomplice, Gugulethu Zulu, 48.
The duo was arrested by the Hawks’ Middelburg-based serious organised crime investigation unit on Thursday.
“Masango was arrested at his workplace at Mkhondo local municipality while Zulu was nabbed in a filling station in Piet Retief,” said Lieutenant Colonel Magonseni Nkosi, provincial spokesperson of the Hawks in Mpumalanga.
Information shows that the municipality’s road marker machine was damaged in 2019.
“It is alleged that Masango was responsible for logistics to get the machine fixed. Arrangements were put in place to get the machine fixed at a service provider that cost only R718.20,” said Nkosi.
Masango and Zulu allegedly paid the service provider the required amount.
“In return, Zulu, a company director and currently a supervisor in one of the industries in Mkhondo (formerly Piet Retief), allegedly invoiced Mkhondo Municipality the total amount of R85,875,” said Nkosi.
The amount was allegedly paid into Zulu’s business account, for his company ‘Legent 12’.
“Investigation was conducted, and all clues that linked Masango and Zulu to fraudulent activities or theft of the municipality funds were uncovered,” according to the Hawks.
Shortly after their arrest, Masango and Zulu were taken to the Mkhondo District Court, where both accused were released on R4,000 bail each.
The matter was postponed to 6 October 2025 to secure a date for their regional court appearance.
Reacting to the arrest, acting provincial head of the Hawks in Mpumalanga, Brigadier Bruce Davenport, has commended the investigation team.
“We once again warn the public that the Hawks will always seek, find, and strike at the right time,” he said.
jonisayi.maromo@iol.co.za
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