Former ANC MP and ANC spokesperson Pule Mabe, along with six others, have made their first court appearance in Ekurhuleni today after handing themselves over to the Hawks this morning, for alleged tender fraud.

Their arrest follows a forensic report by the SIU which found that the Gauteng Department of Agriculture and Rural Development awarded a R27 million tender to one of Mabe’s companies, Enviro-Mobi, in 2017.

Investigations found that the company was allegedly paid upfront, did not provide the agreed-upon services and failed to disclose its affiliation to Mabe.

The tender was issued to obtain proposals to integrate and formalise waste operatives and waste into the mainstream waste management economy.

Enviro-Mobi came up with the proposal to supply 200 tuk-tuks for waste pickers in Ekurhuleni.

The SIU says the contract agreement between the Department and Enviro-Mobi stipulated that the Department may consider paying, on condition that 50% of the work has been completed, and no upfront payments may be made to the service provider.

However, during the investigation, it was established that the Chief Director and Chief Financial Officer processed and paid over R25 million to Enviro-Mobi for 200 motorised three-wheelers, even before any vehicles had been handed over to the Department.

It was also discovered that the service provider later issued a letter of demand to the Department demanding a further payment of over R9 million for safekeeping, storage and ancillary services relating to the fleet.

It is alleged the company failed to disclose in its bid proposal, its affiliation to Mabe and misrepresented to the Department that it had supplied the fleet as well as fleet-related services.

A case was registered at the Johannesburg Central police station in October 2020 which prompted an investigation by the Hawks. Mabe and the other accused will be charged with fraud, theft, contravention of PFMA and Prevention of Organized Crime Act (POCA).

They were each granted bail of R30 000 and instructed to hand over their passports to the investigating officer.