R75M Corruption Case: Nine Arrests in Eastern Cape's Water Tanker Tender Fraud

Published 16 Feb 2026 at 9:56 PM

by Mbalenhle Butale

3 min read

Nine people have been arrested over a R75 million water tanker tender scam in the Eastern Cape’s Alfred Nzo District Municipality
The Special Investigating Unit says the contract, awarded without budget approval, involved trucks and tankers meant for water supply and sanitation projects
Civil action has also been launched to cancel the contract and recover the municipality’s losses

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water tankers — Nine people were arrested in the Eastern Cape over a R75 million illegal water tender. Image: Phill Magakoe/Getty Images
Source: Getty Images

EASTERN CAPE-Nine people have been arrested over a R75 million corruption case linked to a dodgy water tanker tender in the Alfred Nzo District Municipality, Eastern Cape, on 16 February 2026.

According to Eyewitness News, the Special Investigating Unit (SIU) reported that the contract, awarded to Kwane Capital, was approved without a proper municipal budget. The deal included six trucks, six sprinkler water tankers, and three jet vacuum tankers intended for water supply, sanitation, and infrastructure projects.

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Special Investigating Unit announces arrests

SIU spokesperson Kaizer Kganyago confirmed the accused appeared in the EmaXesibeni (Mount Ayliff) Magistrates’ Court on charges ranging from fraud and corruption to money laundering and violating the Municipal Finance Management Act (MFMA).

Johannesburg water cuts

Johannesburg’s water system began throttling reservoir and tower supplies for up to 14 hours a day starting 14 September 2025 as the city struggled to cope with soaring demand and infrastructure strain, leaving many suburbs facing intermittent or no water supply.

Residents in northern areas such as Bryanston were already without water on 13 September 2025 after a burst pipe at the Bryanston reservoir added extra pressure to an already overloaded system. Johannesburg Water offered water tankers to affected communities and urged people to use water sparingly, though no clear timeline for full restoration was available at the time.

The mayor blamed water troubles on population growth

Johannesburg Mayor Dada Morero has blamed the city’s rapid population growth over the past decade for its ongoing water outages and supply challenges, saying demand has outpaced infrastructure capacity. His comments sparked frustration online, with many South Africans criticising the explanation as an excuse rather than a solution to weeks of interrupted taps and water cuts.

Residents protest water shortage

Angry residents in Melville, Johannesburg, took to the streets this week after going more than three weeks without reliable municipal water, blocking part of Jan Smuts Avenue with banners and empty containers to demand urgent action from city officials. Many protesters said they hadn’t had water for 23–24 days, highlighting deep frustration with poor communication and intermittent supply from Johannesburg Water.

The SIU spokesperson Kaizer Kganyago said that they have also launched civil action in the matter. Image: @RSASIU/X
Source: Twitter

Briefly News also reported that Democratic Alliance Johannesburg Mayor-elect Helen Zille blamed decades of neglected infrastructure and budget mismanagement for the current Johannesburg water crisis. Zille have warned that ageing pipes and underinvestment have left the city’s water system “on its last legs,” turning supply failures into viral talking points online. The instability has left communities frustrated and scrambling for solutions as tensions rise over how to fix the problem.