In February 2026, a significant fraud case involving a Nelson Mandela Bay (NMB) municipal contract has already led to legal action.
Recent Fraud and Corruption Cases (February 2026)
Municipal Contract Fraud Arrest: On February 3, 2026, a Gqeberha businessman was arrested by the Hawks for alleged fraud exceeding R189,000. The charges relate to a contract for servicing powercrafts and trailers for the Summerstrand Beach Office, where full payment was allegedly processed despite services being only partially rendered.
High-Profile Court Returns: Several major cases are scheduled for the Gqeberha Specialised Commercial Crimes Court this February. This includes an application for discharge by accused individuals in a high-profile corruption case involving former municipal officials and business owners.
Ongoing Major Investigations
The metro is currently under intense scrutiny for systemic financial irregularities:
Streetlight Tender Scandal: In late January and early February 2026, the NMB council moved toward suspending over 10 officials from the Electricity and Energy Directorate. A preliminary Special Investigating Unit (SIU) report uncovered evidence of fraud and organized crime linked to controversial 2020 streetlight contracts.
Irregular Expenditure Crisis: National Treasury recently highlighted that Nelson Mandela Bay has the highest irregular expenditure in South Africa, estimated between R25 billion and R30 billion, leading to threats of lost funding if accountability measures are not met.
Fraudulent Funeral Policies: A specialized task team is continuing to investigate a syndicate linked to 29 fraudulent funeral policies and at least nine murders in the region, with more than 110 additional policies currently under review for fraud.
In early February 2026, Nelson Mandela Bay (NMB) has seen critical developments in high-profile municipal fraud cases and the rejection of key accountability motions in the city council.
Streetlight Tender Suspension Proceedings
The attempt to hold officials accountable for the R24 million streetlight tender scandal faced a major setback in council last week.
Motion Rejected: On January 29, 2026, the NMB council rejected motions brought by the DA calling for the immediate precautionary suspension of more than 10 officials in the Electricity and Energy Directorate.
SIU Findings: The motions followed a Special Investigating Unit (SIU) report that uncovered evidence of fraud, contraventions of the Prevention of Organised Crime Act, and irregular procurement of LED streetlights.
Political Resistance: The ANC and its coalition partners voted against the suspensions, arguing that the motions were premature and bypassed due process, despite the SIU preparing criminal referrals for the National Prosecuting Authority (NPA).
Specific Court Dates for February 2026
Several major fraud and corruption cases are currently active in the Gqeberha Specialised Commercial Crimes Court:
February 3, 2026: Businessman Sandile Malusi was arrested and granted bail following charges of fraud related to a municipal contract for servicing marine equipment.
February 5, 2026: Accused individuals in the R24 million toilet tender fraud case, including suspended city manager Noxolo Nqwazi and former housing director Mvuleni Mapu, are scheduled to appear again.
Ongoing in February: The Madlanga Commission of Inquiry, which is probing corruption in the criminal justice system, resumed hearings this week (February 2) and is expected to hear testimony from implicated individuals throughout the month.
Late January Remands: Trials for suspects in a R12 million construction firm fraud and a UIF fraud scheme involving a Gqeberha family were processed late last month, with further proceedings expected as the court term advances.
