According to the Hawks spokesperson in the Free State, Christopher Singo, the CFO of the local municipality appointed service providers without following procurement processes. The accused are charged together with the owners of the service providers - Ntsoaki Molapo, Mandla Mrwebi and Leutsoa Mrwebi. The five are facing allegations of fraud, corruption, money laundering, uttering, forgery and contravening the Municipal Finance Management Act.

Singo explained the five accused appeared before the Reitz Magistrate's Court on Monday and only the service providers, Molapo, Mandla Mrwebi and Leutsoa Mrwebi were granted bail of R5000 each. 

It is alleged Mkhefa appointed a service provider by the name of Kabelo Laundry Services, that is owned by Molapo, during March 2010 until June 2011. However, the appointment was made without following procurement processes and it is alleged that no services were actually rendered. It is also alleged that Mkhefa appointed another service provider, known as Mamatse Trading CC, owned by Mandla Mrwebi and Leutsoa Mrwebi. The appointment is accused to be made without following procurement processes for installation of electricity meters by submitting fraudulent delivery notes whilst the electricity meters were still at the manufacturer.

The Nketoane Local Municipality was prejudiced and lost more than R2 million due to the fraudulent activities.

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