Suspended Nelson Mandela Bay city manager Noxolo Nqwazi will return to court in April after most of her co-accused in a fraud and corruption trial, were acquitted on Thursday. Her application and that of former housing director Mvuleni Mapu for their cases to be discharged were unsuccessful. (Photo: Deon Ferreira) 
As they stepped into the corridor outside the Gqeberha regional court on Thursday, 5 February, the people implicated in the infamous R24-million “toilet tender” fraud case exchanged smiles, handshakes and hugs.
Their application to be discharged was successful, and they said they looked forward to rebuilding their reputations as allegations of fraud, corruption and money laundering no longer hang over their heads.
This was true for all but two of the accused.
Suspended Nelson Mandela Bay city manager Noxolo Nqwazi and former housing director Mvuleni Mapu did not share in the elation of their former co-accused. Their applications for discharge were dismissed, and they will return to court in April where they still face charges of fraud and contravention of the Municipal Finance Management Act.
The case dates back to September 2022, when the Hawks executed several arrest warrants on individuals implicated in fraud and corruption charges linked to a project to build toilets in some of Nelson Mandela Bay’s poorest communities. The goal of the project was to “de-densify” these areas to stem the spread of Covid-19 at the height of the global pandemic.
While some of the allegations related to the procurement of the R24-million tender, other charges were connected to alleged corruption and bribes linked to a council vote in 2018 that saw then-mayor Athol Trollip ousted as first citizen of Nelson Mandela Bay.
Alongside Nqwazi and Mapu in the dock on Thursday stood former ANC regional secretary Luyolo Nqakula, HT Pelatona Projects owner Morne van der Linde, husband and wife Xolani and Nwabisa Masela, Thuthiko Logistics owner Nonpumezo Ngotsha, as well as former DA councillors Mbulelo Manyathi, Trevor Louw and Neville Higgins.
/file/dailymaverick/wp-content/uploads/2022/10/MC-Toilets-Estelle_2.jpg "Suspended human settlements director Mvuleni Mapu outside the court in Nelson Mandela Bay on a previous occasion. (Photo: Deon Ferreira)")
Case against Nqwazi and Mapu
The State’s case is that Nqwazi and Mapu bypassed municipal procedures to award the R24.6-million tender to HT Pelatona, which was appointed to construct 2,000 toilets and standpipes in pre-determined locations across Nelson Mandela Bay during the height of the Covid-19 pandemic.
While it was later stated that the tender process deviated from standard procedure because it was an emergency under the pandemic, Mapu failed to outline this in his April 2020 letter to Nqwazi to approve the appointment of HT Pelatona.
In the weeks that followed, after Nqwazi approved the appointment, R400,000 was paid from HT Pelatona to Thuthiko Logistics, which in turn paid R300,000 to Nwabisa Masela, who transferred the money into her husband’s account.
The same amount was subsequently paid to Nqakula, who allegedly paid R100,000 to each of Manyathi, Louw and Higgins.
This money allegedly trickled down from the toilet tender to the former DA councillors for their roles in swinging the 2018 vote of no confidence that saw Trollip vacate the mayor’s seat.
At the close of the State’s case, the defence brought a Section 174 application, stating that the evidence before the court was circumstantial at best and not sufficient to secure convictions against the accused.
In her judgment on the application, magistrate Vuziwe Mnyani recounted some of the evidence led before court.
It was established that the project went ahead and that numerous toilets and standpipes were constructed; however, the project came to a halt because of various factors, including community protests, SMME interference and non-payment of service providers.
However, the facilities that were completed complied with the required specifications.
Mnyani indicated that once the tender was awarded, she could find no clear irregularities.
‘Jigsaw puzzle’
She said the State’s “jigsaw puzzle” did little more than take the court on a journey to show the trail of money exchanging hands, but failed to prove it was the proceeds of criminal activities. It was also not proven beyond doubt that the money paid to Manyathi, Louw and Higgins were “gratuities” for their part in Trollip’s ousting.
The magistrate said it would not be in the interest of justice for the accused to take the stand in the hopes that they might incriminate themselves under cross-examination by the State.
However, Mnyani felt the evidence before court raised valid questions around Nqwazi and Mapu’s conduct with regards to how processes were bypassed for HT Pelatona to be appointed.
They are expected to return to court on 1 April for them to state their cases before court.
While Nqwazi and Mapu declined to comment, their attorney, Alwyn Griebenow, said they were obviously not pleased with the outcome.
“We will abide by the court’s decision. We have requested full transcripts of the judgment which we will study in detail before deciding what the way forward will look like,” Griebenow said.
Advocate Anneline Roestorf, representing Van der Linde, Ngotsha and the Maselas, gave no comment other than to say they were happy with the outcome.
‘Vindicated’
Speaking outside the court building following proceedings, Nqakula said he felt vindicated.
“I have always maintained that I am innocent and that I never took a cent from anyone. I think what has come to light during these proceedings is that I was politically persecuted.”
When asked if the case has harmed his political aspirations, Nqakula said he will take lead from the ANC’s leadership as to his future within the party.
Louw in turn said he looked forward to rebuilding his reputation after his name was “shattered” by the allegations levelled against him over the past four years.
/file/dailymaverick/wp-content/uploads/2022/10/MC-Toilets-Estelle_5.jpg "Former DA councillor Trevor Louw, outside the court in Nelson Mandela Bay during a previous appearance. (Photo: Deon Ferreira)")
“I am relieved. I knew from day one that I was innocent, implicated in things I knew nothing about. I am happy to be able to start rebuilding my life with my family.”
Manyathi echoed his sentiments, saying they missed out on many opportunities with a cloud hanging over them.
“I maintained my innocence and I am glad that the magistrate has pronounced us innocent.
“We were perceived as fraudsters and called every possible ugly name you can think of. Now we have a chance to start afresh,” Manyathi said. DM