Municipal manager arrested for E3.7m salary theft

Municipal Council of Manzini Corporate Services Manager Simphiwe Charles Malaza has been granted E50,000 bail after being charged with allegedly stealing government money amounting to E3.7 million by continuing to receive salary payments after leaving Municipal Council employment.

Malaza first appeared before Magistrate Chazile Thwala, where he was remanded in custody until August 7 pending committal at the High Court. Moments after his remand, he approached the High Court for his bail application.

He told the court that he was arrested by members of the Royal Eswatini Police Service Fraud Unit.

High Court Judge Mzwandile Fakudze granted him bail fixed at E50,000, with E5,000 to be paid in cash and the remaining E45,000 secured as surety.

He was represented by lawyer Gabsile Mnisi.

According to the charge sheet, Malaza is accused of unlawfully and intentionally stealing government money between August 2006 and March 2026 at or near Mbabane in the Hhohho region.

The Crown alleges that Malaza continued to receive and withdraw salary payments from government after leaving his employment. As a result, government allegedly suffered actual financial prejudice amounting to E3,797,885.12.

However, Malaza denied the allegation and told the court that he is innocent of the charge.

He said he would plead not guilty and maintained that he never stole government money.

“I have no access to government payment systems and have never colluded with any government official to facilitate payment of my salary post my resignation,” Malaza stated in his founding affidavit.

He further told the court that instead of concealing the salary payments, he had reported them to the Teaching Service Commission (TSC) on more than three occasions.

“If anything, I reported the salary payment to the Teaching Service Commission in good faith,” he said.

According to Malaza, when the TSC contacted him in March regarding payments dating back to 2007, he undertook to repay the money that had allegedly been deposited into his account erroneously. He said a settlement agreement between himself and TSC had already been drafted and he was awaiting an opportunity to sign it when he was unexpectedly contacted by the police.

“While I awaited signing a settlement agreement which had already been drafted between myself and the TSC, I was shocked to receive a call from the police who essentially questioned me on the issue,” Malaza stated.

Despite his shock at the police involvement, Malaza said he had remained cooperative with law enforcement agencies throughout the investigations.

He said he was summoned to appear before the Fraud Unit at Mbabane Police Station at about 8am on Tuesday and reported to the station at around 9.30am. Upon his arrival, he said he was interrogated before being arrested and charged with theft.

Malaza argued that his continued detention was not in the interests of justice, insisting that there was no possibility that he would endanger public safety, commit a similar offence or interfere with the administration of justice if released on bail.

He also argued that he was not a flight risk, stating that he was a bona fide Liswati who was born and raised in the country and whose family roots were firmly established in the country.

Malaza told the court that he was gainfully employed by the Municipal Council of Manzini as its corporate services manager and supports his wife and children. Although his employment required him to travel, Malaza said he was prepared to surrender his passport to the investigating officer and only have it returned when necessary for work-related travel.

He further undertook not to influence or intimidate any witnesses and said he would comply with any bail conditions imposed by the court.

Malaza argued that his continued incarceration could result in him losing his employment, which he said would cause him irreparable harm. He also maintained that he remained innocent until proven guilty and was entitled to the constitutional presumption of innocence and the right to personal liberty.

“I submit as stated earlier in this affidavit that at this stage, I am innocent of the charge preferred against me and I am entitled to my constitutional right of presumption of innocence until proven guilty,” he stated.

Malaza further said he was eager for the criminal proceedings to be finalised so that he could have an opportunity to prove his innocence.

The court subsequently granted him bail of E50,000, with E5,000 payable in cash and E45,000 secured as surety.