READ: Three Arrested in Nala Municipality Housing Fraud Case

Bloemfontein, May 15, 2025 — Three men, aged 44 to 59, were arrested on Wednesday, May 14, 2025, in connection with a housing fraud scandal in Nala Local Municipality. The suspects, a development officer, a consulting engineer, and a project manager, face charges of fraud, theft, and money laundering. They are scheduled to appear before the Bloemfontein Magistrates’ Court today, Thursday, May 15, 2025.

The arrests, conducted by the Free State Hawks’ Serious Corruption Investigation Unit in Bothaville, Welkom, and Bloemfontein, stem from a 2021 Department of Human Settlements contract. The contract, valued at over R1.1 million, was awarded to a service provider to construct 47 foundations for a low-cost housing project in Bothaville during its first phase. Investigations revealed that only 14 foundations were completed, despite the full payment being made.

Lieutenant Colonel Zweli Mohobeleli, Free State Hawks spokesperson, confirmed that the investigation uncovered alleged collusion between the service provider and the three municipal officials. The findings were presented to the National Prosecuting Authority, which issued arrest warrants. Mohobeleli added that the arrest of the service provider is imminent, indicating the investigation remains active.

The case highlights ongoing concerns about accountability in public housing projects, particularly in municipalities facing governance challenges. Further developments are expected as the court proceedings unfold and the investigation continues.