A former government finance official has been granted R1,000 bail after being arrested over an alleged scheme involving State funds intended to develop restituted land in Mpumalanga.
By Staff Reporter
A former senior finance official in the Department of Rural Development and Land Reform has been arrested in connection with an alleged R1.35 million fraud involving money intended to help a community develop restituted land in Mpumalanga.
Grace Mokoka, 50, who served as the department’s Deputy Director of Finance, appeared in the Nelspruit Magistrate’s Court on Tuesday, 29 September 2026, and was granted R1,000 bail. The case was postponed to 26 October.
Mokoka faces charges of fraud, theft and corruption under the Prevention and Combating of Corrupt Activities Act, as well as money laundering under the Prevention of Organised Crime Act.
The case follows an investigation by the Special Investigating Unit (SIU), which referred evidence of suspected criminal conduct to the Directorate for Priority Crime Investigation, commonly known as the Hawks.
The investigation centres on a land restitution project involving the Ingogo Communal Property Association (CPA), which successfully lodged a claim in 2018 for the restitution of land rights.
The claim covered portions of the farm Barneveld 16 IT, and a portion of the farm Buffelspruit in Mpumalanga.
The community was expected to develop the land into a viable business enterprise, with equipment including tractors, firefighting equipment and other machinery required for the project.
According to the SIU, MPG Mash Trading CC was irregularly appointed to supply the equipment, with R1,358,640 approved for the project.
Mokoka allegedly approved a payment of R1,358,440 to the company, despite the required procurement procedures not having been followed, and despite no services having been rendered.
The SIU said its investigation found that some of the equipment was never delivered to the beneficiaries, while other items were only partially delivered.
The equipment was supposed to include a 4×4 single-cab bakkie, trailers, a grass cutter, protective clothing, firefighting equipment, a generator and tractors.
The investigation also found that the beneficiaries were not involved in selecting or appointing the service provider, meaning the project did not receive value for money, according to the SIU.
The unit further alleged that quotations had been obtained from personal acquaintances of officials and that money paid by the department to the service provider was used for the personal benefit of some officials.
It found no evidence that the company had been appointed through a procurement process that was fair, equitable, transparent, competitive and cost-effective, as required by Section 217 of the Constitution.
The SIU also uncovered problems with the company’s VAT claims.
It found that MPG Mash Trading had claimed R166,850 in VAT from the department but had not paid the amount to the South African Revenue Service (SARS) and had used inactive VAT numbers.
The company’s director, Mduduzi Mashwama, was convicted by the Nelspruit Commercial Crime Court in 2024 of theft and contravening the Prevention of Organised Crime Act in connection with fraudulent VAT claims and the unlawful receipt of refunds totalling R166,850.
He received wholly suspended sentences and was ordered to repay SARS the R166,850 at R500 a month until the amount is paid in full.
The SIU said Mashwama had allegedly submitted the invoice after being approached by Sikhumbuzo Nkosi, who had been appointed project manager by departmental project officer Godfrey Mchunu.
Mchunu and Nkosi were arrested in connection with the matter in 2025.
The broader SIU investigation was authorised under Proclamation R53, published on 21 September 2012, which empowered the unit to investigate matters relating to the Department of Rural Development and Land Reform.
The SIU said it would continue working with the Hawks and the National Prosecuting Authority to pursue those suspected of corruption and recover money lost by the State.
The unit is also empowered to institute civil proceedings in the High Court or Special Tribunal to recover State funds and address wrongdoing uncovered during its investigations.