Fraudster Jailed for 12 Years for Defrauding Buffalo City Municipality


East London: A determined investigation by the Hawks’ Serious Commercial Crime Investigation team in East London, in collaboration with the National Prosecuting Authority (NPA), has led to the successful conviction and sentencing of 61-year-old Nkgaoli Ezekiel Lushozi for defrauding the Buffalo City Municipality (BCM) of over R3.8 million.



According to South African Police Service, Lushozi, the sole director of Newboss Construction Company, was awarded a contract to construct low-cost housing in East London. As part of the agreement, project funds were to be managed through a controlled account held by the National Urban Reconstruction and Housing Agency (NURCHA). This ensured that NURCHA would deduct its share before releasing the remaining funds to Newboss Construction.



However, in 2010, Lushozi unlawfully changed the banking details with BCM without notifying NURCHA. This led to all project payments being redirected to a private account under his control, blatantly breaching the terms of the agreement.



The fraudulent activity resulted in a civil court order obliging BCM to repay NURCHA the full amount of R3.8 million. A warrant for Lushozi’s arrest was issued shortly thereafter. He remained on the run for years until the Hawks apprehended him on 07 August 2022 while attempting to flee the country via the Lesotho border.



On 21 May 2025, the East London Commercial Crimes Court sentenced Lushozi to 12 years direct imprisonment. Additionally, his company, Newboss Construction, was fined R500,000, wholly suspended for three years.



Provincial Head of the Hawks in the Eastern Cape, Major General Mboiki Obed Ngwenya, stated that “The Hawks will continue to expose and dismantle acts of fraud especially those targeting public resources.”