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South African businessman loses E1.4m in bribe gone wrong

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The fraudsters are believed to have used a boardroom in the Ministry of Public Works and Transport for a 'meeting' with the South African director to make him believe the deal was authentic. (Pic: Mukelo Magagula)
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MBABANE – Police have launched a massive investigation into a sophisticated tender fraud scam that saw a South African company director lose over E1.4 million.

The probe has taken a dramatic turn, with investigators now digging deep into the possible involvement of senior government officials.

This was after it was discovered that the fraudsters used a boardroom at the Ministry of Public Works and Transport to convince the director of the authenticity of the tender.

The victim, a 45-year-old director of Ikhono Techni (Pty) Ltd was allegedly swindled a total sum of E1 404 500 over a period spanning nearly two years, from August 2022 to July 2024.

Under Section 21 of the Prevention of Corruption Act, 2006, a person who gives another a bribe commits an offence.

Section 21, titled ‘Bribery’, criminalises offering, giving, receiving or soliciting any ‘advantage’ to a public officer to influence their actions, particularly concerning their official duties or the transaction of business with public or private bodies. It broadly defines an offence as being committed by a person who offers an advantage as an inducement or reward to a public officer for performing or forbearing to perform an act or for expediting, hindering or assisting in any business with a public or private body.

Ikhono Techni (Pty) Ltd is a South African company based in Gqeberha (formerly Port Elizabeth) in the Eastern Cape, specialising in architectural, engineering and related services, with a 2024 sales revenue of US$1.75 million.  It is associated with the Ikhono Group, which also operates in construction equipment rentals through its MIT Plant division. The fraud was meticulously executed by three unknown emaSwati men, who allegedly convinced the director that his company had been awarded a lucrative tender to construct two major Eswatini roads, D29 and D92, which they claimed were funded by an international donor.  The D29 Public Road connects Luve to Lugaganeni in the Manzini Region, while the D92 Public Road is located in the Shiselweni Region and connects Hlatikhulu and Lavumisa.

The investigation is centred on how the fraudsters gained access to the ministry’s premises and, more specifically, a boardroom, which they used to host a meeting with the director.

This meeting, held in an official government building, allegedly convinced the victim that the ‘deal’ was legitimate and that he was engaging with genuine representatives of the Eswatini Government.

This valuable piece of evidence has led police to suspect a possible inside job, prompting them to cast a wide net and scrutinise the actions of officials within the Ministry of Public Works and Transport – the very ministry responsible for overseeing the construction of the country’s roads network.

A source revealed that the use of the ministry’s boardroom was a game-changer for the investigation.  “This is not your average street-level fraud. The level of access and sophistication required to use a government facility for a meeting like this suggests that the culprits had help from within the system.

“We are following all leads and will not hesitate to question anyone, no matter their rank, if we find evidence of their involvement,” said the source.

The police unit, which includes seasoned detectives from the Fraud and Commercial Crimes Unit, is reportedly working around the clock to solve the mystery. The elaborate fraud began when the businessman was allegedly contacted by the suspects, who introduced themselves as government procurement consultants. They are said to have presented him with what appeared to be official tender documents and a letter of intent to award the contract to Ikhono Techni (Pty) Ltd. 

*…

Fake letter reported

MBABANE – In June 2025, the Gauteng Department of Roads and Transport was made aware of a fake ‘letter of appointment’ targeting individuals and companies that had submitted bids for tenders.

The department asserted that the letter was fake and had not been authorised by it.

In it, the fake letter referred to the appointment of companies to the Professional Service Providers (PSP) panel as per Tender No: DRT03042024 (‘Panel of Consultants for Professional Engineering Services’) and was duly signed off by the head of department.

The department categorically stated that this process was ongoing and had not been concluded.

This means no appointment letters were being issued to any service providers as the evaluation process of proposals was yet to conclude.

*Full article available in our publication.

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