The Special Investigating Unit (SIU) has secured a preservation order from the Special Tribunal to freeze a luxury property in Bendor, Polokwane, and a motor vehicle. This follows an intensive investigation that uncovered an alleged bribery and corruption scheme where an Eskom employee and his family received approximately R8 million in payments from companies unlawfully favoured in a R54 million tender.

The order, granted by Judge M Victor, prevents Johannes Seroke Mfalapitsa (an Eskom surveyor and project manager), Ndiyafhi Denge (his spouse), and others from selling or dealing with the assets. The investigation was initiated under Proclamations R.11 of 2018, R.3 of 2020, and R.97 of 2022.

A Network of Family and Friendship Ties at the Heart of the Scheme

The SIU investigation revealed that a close-knit network of family and friends facilitated the alleged corruption. Johannes Mfalapitsa was the "Employer's Agent" and a technical evaluator for Eskom's R54 million tender for High-Definition Surveying Services. His spouse, Ndiyafhi Denge, received over R2.2 million from the scheme, while his brother, David Mfalapitsa, received over R228,000 from a service provider's director.

The network extended to Mpho Negondeni, who Mr Mfalapitsa's spouse "raised as her own child," and her company Tabogambambe (Pty) Ltd, which was used as a conduit. Over R3.6 million flowed from service providers to them, which was then used to pay for the construction of the Bendor property and to make payments to Ms Denge. The investigation also uncovered a close relationship between Mr Mfalapitsa and Bulelani Lengoasa, the director of Buzwe Geomatics Engineering Services (Pty) Ltd. Mr Lengoasa personally paid Mr Mfalapitsa's brother and made payments exceeding R155,000 directly to contractors building the swimming pool and balustrades at the Bendor property.

Systemic Conflict of Interest and Abuse of Power

Mr. Mfalapitsa occupied multiple conflicting roles in the tender process, in direct violation of Eskom's Conflict of Interest Policy. He helped draft the tender's scope of work, evaluated bidders' technical submissions, and was appointed the Project Manager for the awarded contract. Crucially, while evaluating bids, his spouse was already receiving payments from one of the bidders, NTG Solutions CC. He failed to declare this in his annual conflict of interest declarations from 2016 to 2024. The SIU made a referral for disciplinary action Mr. Mfalapitsa. He is currently suspended.

Funnelling of Eskom Funds for Private Gain

Forensic analysis of bank statements tracked how money from Eskom was siphoned off. Eskom paid three service providers—Buzwe, NTG Solutions, and Litha Langa Consulting—over R29 million under the contested contract. These companies then made a series of round-figure, VAT-less payments to entities and individuals linked to Mr Mfalapitsa.

Buzwe, which received the largest share (25%) of the contract value, was the biggest payer, funnelling an estimated R7 million to the Mfalapitsa network. Evidence suggests that Mr Mfalapitsa favoured Buzwe in work allocations, against his supervisor's advice. Funds were used to purchase building materials, pay the main contractor, and for luxury additions, such as a swimming pool and balustrades, at the Bendor property, registered in Ms Denge's name.

The Preserved Assets

The order explicitly preserves two key assets believed to be proceeds of the scheme. The first is the Immovable Property: Bendor, Limpopo. Valued at approximately R3.9 million, the SIU contends that at least R1.5 million of its construction costs originated from unlawful payments. The second is a Motor Vehicle: A Nissan NP200. Investigations reveal it was acquired by Mr Mfalapitsa from another Eskom employee, using funds traced from the scheme.

The preservation order is an interim measure to secure the assets for future recovery. At the same time, the SIU prepares to institute civil action to review and set aside Eskom's award of the tender to Buzwe, NTG, and Litha Langa, and to recover financial losses suffered by the state.

The SIU was, in terms of Proclamation R.11 of 2018, R.3 of 2020, and R.97 of 2022, authorised by President Cyril Ramaphosa to investigate allegations of corruption, malpractice, and maladministration in the affairs of Eskom.

The SIU is empowered to institute civil action in the High Court or a Special Tribunal in its name, to correct any wrongdoing uncovered during its investigations caused by acts of corruption, fraud, or maladministration. In line with the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU refers any evidence pointing to criminal conduct to the National Prosecuting Authority (NPA) for further action.

Enquiries: 
Kaizer Kganyago 
Spokesperson: Special Investigating Unit 
Cell: 082 306 8888 
E-mail: KKganyago@siu.org.za 

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