A senior official within South Africa’s Department of Correctional Services has appeared before the Pietermaritzburg Magistrates’ Court after being arrested on allegations linked to fraud and money laundering.
Mnikelwa Nxele, the KwaZulu-Natal Regional Commissioner for the department, was taken into custody by the Investigating Directorate Against Corruption (IDAC) and formally charged following an extensive corruption investigation.
Investigation Linked to State Capture Evidence
According to authorities, the case stems from information that emerged during the State Capture Commission.
Evidence provided by former BOSASA executive Angelo Agrizzi reportedly triggered further investigations into contracts awarded by the Department of Correctional Services.
IDAC spokesperson Henry Mamothame said the matter was referred to the Directorate for Priority Crime Investigation (DPCI), commonly known as the Hawks, after investigators examined evidence relating to BOSASA contracts worth approximately R20 million.
Alleged Monthly Bribes Under Scrutiny
Investigators allege that Nxele received regular kickbacks while serving as Chairperson of the Special Bid Adjudication Committee in KwaZulu-Natal.
Authorities claim the payments amounted to roughly R100,000 per month and were linked to procurement-related activities connected to BOSASA contracts.
Trust Allegedly Used to Conceal Funds
The prosecution further alleges that a trust known as Zogoba Trust was established and used as a vehicle to hide the movement of illicit funds and assets.
According to investigators, the trust played a central role in disguising financial transactions and concealing wealth allegedly accumulated through unlawful activities.
Properties and Gambling Activities Examined
IDAC claims that some of the money under investigation was used to acquire properties and finance gambling activities at casinos across South Africa.
Investigators are also examining allegations that Nxele failed to comply with mandatory financial disclosure requirements imposed by the Department of Public Service and Administration.
Court Grants Bail as Case Continues
Following his court appearance, Nxele was granted bail of R50,000.
The matter has been postponed to 16 September 2026, when the court is expected to hear further proceedings as investigations and legal processes continue.
