A company director is expected to appear in court after the Hawks arrested him over allegations that he used rented park homes to fulfil a Department of Transport tender worth R880 000 – only for the units to later be repossessed when rental payments were allegedly not made.
The 42-year-old suspect was arrested on Tuesday, 6 October 2026, following a lengthy investigation by the Hawks’ Serious Corruption Investigation (SCI) team in KuGompo, Eastern Cape. He is expected to appear before the KuGompo Magistrate’s Court on Wednesday, 7 October.
Tender worth R880 000
The investigation centres on a Department of Transport tender issued in 2023 for the supply, delivery and assembly of prefabricated modular units for the Middledrift Roads Maintenance Camp in the Raymond Mhlaba Local Municipality area.
According to the Hawks, the contract was valued at R880 000 and was awarded to a company of which the arrested man was the sole director.
The tender required the successful service provider to supply and deliver modular units in accordance with the department’s contractual requirements.
The Hawks allege that the company subsequently delivered eight park homes to the designated departmental site at Middledrift.
On the surface, the delivery appeared to indicate that the company had fulfilled its obligations under the tender.
However, investigators later began examining how the park homes had been acquired and whether the company actually owned the units or had the contractual right to supply them.
Park homes allegedly rented
Hawks spokesperson Warrant Officer Ndiphiwe Mhlakuvana said the investigation uncovered concerns about the provenance and ownership of the units.
“It is alleged that the company delivered eight park homes to the designated departmental site at Middledrift,” Mhlakuvana said.
He said subsequent enquiries focused on the “provenance, ownership and contractual basis” on which the units had been supplied.
According to the investigation, the company director had allegedly obtained the park homes from a rental company.
The units were then allegedly delivered to the Department of Transport as though they constituted the supply required under the government tender.
This is now at the centre of the fraud allegations against the director and his company.
Rental payments allegedly stopped
The Hawks allege that the rental agreement was not maintained after the park homes had been delivered.
Investigators reportedly established that rental payments remained outstanding for approximately two to three months.
The rental company subsequently reclaimed the park homes.
The development raised questions about whether the company awarded the government contract had sufficient ownership rights or financial arrangements in place to provide the units for the duration and purposes of the tender.
The Hawks said the investigation ultimately resulted in the arrest of the company and its sole director.
The suspects have been charged with fraud.
Hawks investigation leads to arrest
The arrest followed what the Hawks described as a protracted investigation into allegations surrounding the Department of Transport tender.
The investigation is being handled by the Hawks’ Serious Corruption Investigation unit in KuGompo.
The allegations remain just that at this stage. The suspect has not been convicted of any offence and is entitled to the constitutional right to be presumed innocent unless and until proven guilty in court.
His appearance before the KuGompo Magistrate’s Court on 7 October is expected to provide the first opportunity for the matter to formally enter the court process.
The state will have to present its case and establish the allegations through evidence as the criminal proceedings progress.
Another tender fraud case under investigation
The case comes amid continued scrutiny of government procurement and allegations of fraud involving public tenders.
The Hawks have recently pursued several cases involving alleged irregularities in government contracts.
In September, the Hawks arrested three suspects in connection with alleged fraud and corruption involving a R16 million security tender at the Blouberg Local Municipality in Limpopo. Investigators alleged that the successful company did not meet mandatory tender requirements and that fraudulent documents and firearm details were submitted.
In another Gauteng case, five people, including a City of Johannesburg Supply Chain Management deputy director and directors and engineers linked to a private company, appeared in court over allegations surrounding a R188 million tender for specialised fire and rescue trucks. The Hawks allege that only 15 of the 40 contracted vehicles were delivered despite payments exceeding R172 million.
These investigations form part of the Hawks’ broader mandate to investigate serious organised crime, corruption and other priority offences.
For the Eastern Cape director, however, the immediate focus will now shift from the investigation to the criminal court process, where the allegations surrounding the eight park homes and the R880 000 Department of Transport contract will be tested.
