Court Grants R50k Bail To Key Accused In Mpumalanga Education Fraud Case

Four of the 33 accused in the explosive R113 million Mpumalanga Department of Education fraud case have been granted R50 000 bail by the Nelspruit Magistrate’s Court.

The group appeared in court on Monday, 23 February, facing charges of fraud, theft, money laundering and contravention of the Public Finance Management Act. The case centres on allegations that funds earmarked for urgent school repairs were siphoned off through a coordinated scheme involving officials and service providers.

R113m ‘Schools Emergency Repairs’ Scandal Rocks Mpumalanga Education Department

The accused are allegedly linked to irregular tenders connected to the “schools emergency repairs” project, involving 20 schools across the province. Investigators claim contracts were unlawfully awarded and prices inflated, with payments allegedly made in some instances despite no work being done.

According to the Hawks, officials are suspected of handpicking service providers, after which funds were allegedly channelled into the accounts of relatives and implicated officials.

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Among those arrested is Absalom Thela, former acting chief financial officer of the Mpumalanga Department of Education and now chief director for physical resources, along with his daughter, Palesa Thela. Former acting head of department Jabulani Nkosi and several Mpumalanga businessmen are also among the accused.

The suspects were arrested at their homes on Sunday morning, while others handed themselves over to police on Monday.

Magistrate Describes Alleged Fraud as ‘Well-Organised Machinery’

During proceedings at the Mbombela (formerly Nelspruit) Magistrate’s Court, Magistrate Patrick Morris described the alleged scheme in stark terms.

“When I listen to the prosecutor, I see that this was a very nicely organised machinery and the money was meant for our schoolchildren around the province,” he said.

The matter of service provider Consolation Mdluli was heard first due to her being wheelchair-bound. She was granted R5 000 bail after pleading financial hardship. A breastfeeding mother among the accused was also released on bail.

Absalom Thela told the court he was unwell and argued that his release would be in the interest of justice, assuring the court he would attend all future proceedings.

His daughter, Palesa Thela, sought bail of R5 000. However, prosecutor Prenisha Jagganath opposed the request, arguing that her company was central to the alleged laundering of funds.

“She’s the daughter of Mr Absalom Thela and an owner of a company that was used to launder the money. The money would then be distributed to the accounts of government officials in the case.

“We therefore ask that the court give her a high amount of bail and all her travelling documents to be handed over,” said the prosecutor.

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Magistrate Morris agreed with the state and granted both Absalom and Palesa Thela R50 000 bail each.

“It is the court submission that it will be in the interest of justice for the accused to be released on bail. The conditions [are] that the accused not interfere [with] or intimidate witnesses and the accused to hand over her passport to the investigating officer. Bail is granted at R50,000,” he ruled.

Former senior department official Nono Maribe and service provider Ruth Khoza were also each granted R50 000 bail.

Remaining Accused to Appear as Hawks Make More Arrests

The rest of the suspects remain in custody at the Nelspruit Police Station and are expected to appear in court on Tuesday, 24 February. They will be joined by three additional suspects arrested on Monday.

Outside court, Mpumalanga Hawks head Major-General Nico Gerber confirmed that three more arrests were effected as investigations continue.

All accused granted bail are expected back in court on 26 March.

The bail applications for the remaining suspects are set to continue as the high-profile corruption case unfolds.