Lawyers, Municipal Officials Arrested for Fraud and Money Laundering: Arrests and Charges

Limpopo-based lawyers and municipal officials have been arrested on charges of fraud and money laundering. 

Key Points:

• Lawyers and municipal officials face charges of fraud and money laundering.
• The accused allegedly fabricated a court order for financial gain.

• Furthermore, they did not oppose bail; however, the conditions include surrendering passports.

Arrests and Charges

The police arrested officials from a Limpopo-based law firm and employees of the Sekhukhune Municipality. The National Prosecuting Authority (NPA) confirmed that they charged them with fraud and money laundering.

Mashudu Malabi-Dzhangi, spokesperson for the NPA in Limpopo alao confirmed that the accused appeared before the Groblersdal Magistrate’s Court on Tuesday. The accused individuals include Peter Mdhluli, a senior legal administrative officer; Mantwa Vicky Makanyane; Chantel Kgaugelo Letsoalo, an attorney; as well as other individuals associated with companies such as Mdhluli and Trading General Works, Change Strategies Consulting Services CC, Letsoalo KC Attorneys, Batheeng Logistics, and individuals from the Sekhukhune Municipality and the Sekhukhune Development Agency.

Malabi-Dzhangi said all the accused face charges of fraud, alternatively theft, money laundering, and aiding others to benefit from proceeds of unlawful activities. Additionally, the acquisition, possession, or use of proceeds from unlawful activities are also part of the charges.

Fabricated Court Order Alleged

The NPA alleges the accused worked together to fabricate a court order and a writ of execution. The document falsely stated that the Sekhukhune Development Agency had breached a contract with KC Letsoalo Attorneys. Based on this misrepresentation, the Sekhukhune Development Agency allegedly paid R460,000 into a trust account of KC Letsoalo Attorneys. From there, they transferred R360,000 of the funds to Mdhluli and Trading General Works, Makanyane, Change Strategies Consulting Services CC, and Batheeng Logistics.

Bail and Court Proceedings

During the court proceedings, the defense did not oppose bail, and the court considered other factors such as employment and the verification of addresses. The court heard that the home addresses of the accused were verified. As such none of the accused had pending cases or previous convictions. As such, the defense argued that none of the accused had pending cases or previous convictions.

They also argued that the accused are employed, are not flight risks, and will not interfere with state witnesses.

As a condition of bail, the court proposed that two of the accused—Mdhluli and Makanyane—surrender their passports to the investigating officer if the court grants them bail. The court postponed the case to Wednesday for a ruling on the bail application. All accused remain in custody.