Cape Town Grapples with R1.6 Billion Fraud Probe; Clean Audits Questioned
The City of Cape Town is facing scrutiny after a large-scale police raid uncovered a potential R1.6 billion tender fraud. The GOOD Party is questioning the validity of the city's clean audits in light of the investigation, which targets contracts issued by the municipality.
Police Raids Target Municipal Corruption
On Tuesday and Wednesday, the South African Police Service (SAPS) conducted raids on 26 properties across Cape Town, including municipal offices, private businesses, and the homes of city officials and service providers. The operation, led by the Commercial Crimes Investigation Unit, is linked to alleged fraudulent contracts awarded by the City of Cape Town.
WATCH | The ANC in Cape Town calls for the Municipal Accounts Committee to be open to the public, following the police’s Commercial Crimes Investigation Unit search-and-seizure raids at 26 properties within the city. Police say the operation is linked to contracts awarded by the… pic.twitter.com/HxIlbGOYvG
— SABC News (@SABCNews) October 1, 2025
GOOD Party Calls for Audit Scrutiny
Brett Herron, GOOD Secretary-General and Member of the Western Cape Parliament, expressed concern over the city's clean audits. He questioned how the city could achieve clean audits while facing such a significant fraud investigation. "When SAPS arrives with warrants linked to tender fraud on the scale of R1.6 billion, we are compelled to ask: how did the City manage to have all these so-called ‘clean audits’?”
Herron emphasized the increase in investigations during the current term, stating, "In this term of office, since 2021, the City of Cape Town has had more raids by the Hawks and Commercial Crimes Unit of SAPS than during all the previous terms combined." He also cited other corruption scandals, including a R1.8 billion housing corruption scandal and a R386 million waste management corruption scandal.
Mayor Hill-Lewis Defends City's Actions
Cape Town Mayor Geordin Hill-Lewis responded to the allegations, stating that the city initiated the investigation. “The fact is that the City of Cape Town’s City Manager, Lungelo Mbandazayo, asked the SAPS to investigate this matter, following the City’s own internal investigation,” he said. He further emphasized the city's commitment to rooting out corruption: “Our residents can know that we will always root out any wrongdoing and have a zero tolerance for corruption.”
Investigation Focuses on Construction Contract
The investigation centers on a R1.6 billion construction contract. According to reports, three City of Cape Town officials are implicated in the tender fraud probe. The raids were prompted by a whistleblower and internal investigations by both the city and the SAPS. The urban mobility directorate is a key area of focus in the probe.
Ongoing Investigation and Next Steps
The SAPS has confirmed that the investigation is ongoing and has appealed for space to complete their work. No arrests have been announced at this stage. The City of Cape Town maintains that it is cooperating fully with the authorities and is committed to addressing any wrongdoing. The extent of the alleged fraud and its potential impact on city services remain to be seen.
