Fraud and Forgery Allegations Mount Over Questionable ML Nkosi Guarantees in Public Sector Contracts

Multiple performance guarantees submitted by ML Nkosi Electrical Contractors to secure public sector contracts appear to originate from Marlvern Trading CC, a company formally prohibited from issuing financial instruments, raising serious allegations of fraud and forgery across South Africa's procurement system.

The discovery of at least four separate questionable guarantees across unrelated government projects has prompted regulatory investigation and warnings from civil society watchdogs about systemic vulnerabilities in public procurement verification processes.

Background and Context

The allegations emerge amid ongoing concerns about financial integrity in South Africa's public procurement ecosystem. Performance guarantees serve as critical financial instruments ensuring contractors fulfill their obligations on government projects, typically requiring verification through authorized financial institutions.

According to investigations, the guarantees in question were submitted after Marlvern Trading CC had been legally barred from issuing such instruments, suggesting either continued illegal activity or the circulation of forged documents within official procurement channels.

Key Figures and Entities

ML Nkosi Electrical Contractors (Pty) Ltd, represented by directors Petros Pitzer and Portia Sebenzile Gwala, along with company representative Moeketsi Duiker, has submitted multiple performance guarantees across various public sector projects. Despite repeated inquiries, none of these individuals have responded to requests for clarification.

Marlvern Trading CC, directed by Khuphukile Dube, appears to be the originating entity for the questionable guarantees despite its prohibition from issuing financial instruments. Dube has similarly failed to provide explanations regarding the company's continued involvement in guarantee issuance.

Civil society organization Right to Justice has characterized the pattern as "strongly indicative of fraud and possible forgery," warning of threats to public oversight and financial integrity.

Legal and Financial Mechanisms

The Financial Sector Conduct Authority (FSCA) has acknowledged receiving inquiries regarding Marlvern Trading CC's authorization status and confirmed ongoing investigation into the matter. The regulatory body's potential actions could include full deregistration of Marlvern and personal liability sanctions against its director if violations are confirmed.

Should the guarantees prove to be forged rather than improperly issued, responsibility would shift to ML Nkosi and its associates, potentially triggering criminal charges including forgery, fraud, uttering, and misrepresentation to secure unlawful financial advantage.

Legal experts note that the scale of the alleged scheme could prompt not only criminal prosecution but also civil recovery actions and permanent disqualification from future public tenders.

International Implications and Policy Response

The emergence of these questionable guarantees across multiple public sector entities highlights deeper institutional weaknesses in procurement verification processes. The apparent ability of fraudulent or prohibited financial instruments to pass through supply chain controls underscores systemic vulnerabilities affecting government institutions, subcontractors, and taxpayers.

Industry observers argue that South Africa's procurement ecosystem requires strengthened due diligence measures, including real-time FSCA compliance checks and direct verification with issuing institutions. Such enhancements would need to become mandatory across all spheres of government to prevent similar incidents.

The case also raises questions about cross-border financial crime prevention mechanisms, as the movement of potentially fraudulent instruments through official channels suggests gaps in both domestic and international regulatory frameworks.

Sources

This report draws on investigations into public sector procurement documents, regulatory filings, and statements from the Financial Sector Conduct Authority. Information was also obtained through civil society monitoring reports and industry analysis of South Africa's procurement verification systems.