Fraud-Accused Director Claims to Be Uber Driver After Winning R2.2 Million SANDF Tender

Mugisha Charles Mwali, the director of Phomolo Enterprises, and his co-accused, retired SA National Defence Force (SANDF) brigadier-general Mendis Eddy Mondlane, appeared in the Pretoria Commercial Crimes Court on Thursday morning.

The two were arrested by military police on Wednesday and charged with fraud relating to a tender to provide 3,000 heat-resistant buffs and military goggles required at various South African bases in Operation Cordite in Sudan.

Mwali, who is accused of committing fraud to win the more than R2 million tender, now claims to be an Uber driver making R2,500 a month. The National Prosecuting Authority (NPA) stated that Modlane allegedly defrauded SANDF by writing a request that deviated from the procurement processes.

During the court proceedings, Advocate Charles Mnisi tried to cast doubt on Lieutenant Colonel Gideon Gouws's testimony relating to the evidence he gave on Wednesday and asked the court to play records of the testimony.

The case originated in 2015 when Modlane, who was in the joint operation headquarters division, requested the procurement of the heat-resistant buffs and military goggles for various South African bases. Modlane is accused of defrauding the SANDF by requesting that Phomolo Enterprises be appointed to supply and deliver the items, and the company was later awarded the contract.

Why this matters: This case highlights potential corruption and fraud within the South African military procurement process. It raises concerns about the integrity of the tender system and the misuse of public funds.

Both Modlane and Mwali were granted bail, and their case was postponed to July 17, 2024, for further investigations. More accused are expected to be added to the case. Modlane is facing four counts of fraud, while Mwali and their company, Phomolo Enterprises (PTY) LTD, are facing one count of fraud.

Key Takeaways

• Two accused of fraud in R2M SANDF tender: Mwali and retired Brigadier-General Mondlane.
• Mwali, director of Phomolo Enterprises, now claims to be an Uber driver earning R2,500/month.
• Mondlane allegedly defrauded SANDF by bypassing procurement processes to award tender to Phomolo.
• Case highlights potential corruption and fraud in South African military procurement system.
• Accused granted bail, case postponed to July 2024 for further investigations.