KZN correctional services commissioner in court on fraud, money laundering charges
Stay ahead of procurement changes
Key Points
- KZN Correctional Services Regional Commissioner arrested for fraud and money laundering linked to BOSASA contracts (~R20M)
- Allegations include bribes (R100K/month) while chairing Special Bid Adjudication Committee, raising concerns about tender process integrity
- Fraudulent activities allegedly conducted via Zogoba Trust to conceal illicit funds, including property purchases and gambling
- Case linked to State Capture Commission evidence, signaling heightened scrutiny of past and current procurement processes
- Non-disclosure of financial interests to DPSA, violating public service ethics and procurement transparency requirements
- Ongoing investigation may lead to broader reviews of Correctional Services tenders in KZN, potentially affecting future bids
KwaZulu-Natal Regional Commissioner of the Department of Correctional Services, Mnikelwa Nxele, has appeared in the Pietermaritzburg Magistrates’ Court on charges of fraud and money laundering following his arrest by the Investigating Directorate Against Corruption (IDAC).
“His arrest emanates from a referral to the Directorate for Priority Crime Investigation (DPCI), [commonly known as the Hawks], after investigations were conducted on evidence that was provided by Angelo Agrizzi during the State Capture Commission involving BOSASA contracts, valued at approximately R20 million,” IDAC spokesperson Henry Mamothame explained.
According to the IDAC, Nxele allegedly received bribes of approximately R100 000 per month while he was the Chairperson of the Special Bid Adjudication Committee in KZN.
“It is alleged that fraudulent financial activities were conducted through Zogoba Trust, which he registered and used to conceal the movement of funds, as well as the assets accumulated through criminality,” Mamothame said.
“The money was allegedly utilised to purchase properties and for gambling in various casinos around the country. He is further accused of failing to make his financial disclosure with the Department of Public Service and Administration,” Mamothame said.
Nxele was granted bail of R50 000, and the case was postponed to 16 September 2026. – SAnews.gov.za